Australia's largest stock trading and investment forum Australia's #1 stock forum

XTC

0.00%

20.0¢ xtc lithium limited

Ann: Xantippe to Raise up to $20 Million in Placement & SPP, page-62

First 62 Last

Share
Profile

Follow
aribeth

268 Posts.

18

09/12/22

18:00

Post #: 65248569
Share

Originally posted by ogloko: ↑

"Shares on issue mean jack shit"

Completely disagree. They rarely work out and holders are usually worse off

A consolidation affect the buying/holding psychology especially to people that don't have a full understanding of how the markets work.....

A company will have the exact valuation but if the share price is lower people subconsciously think it's cheaper where as it's more expensive if the share price is higher. If a company is valued at $50 million, are you paying more for it if the shares are 50c or 1c?........ The answer is obvious but to some they'd be more likely to buy a higher soi stock if the price is low because it's "cheaper"

Another thing post consolidation is retail will also foolishly get spooked and sell as they "lost out". They see less units and all of a sudden they have a smaller holding which isn't true

One final mention with consolidations is there is more room for the share price to fall post consolidation. Look at so many consolidations and you'll see that the price post ends up being much much lower than the equivalent price would have been pre consolidation

It's all psychology. Stupid but that's what always happens and see so often

Expand

Totally agree, I have been involved in a number of consolidations and every one without fail has been disatrous for the value of the SP. I really hope they dont do a consol for a long while or at least until we have a much higher market cap.

XTC Price at posting: 0.5¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

Reply

Top Stories

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

What's causing the cost-of-living crisis, and how to navigate it

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins