PEN peninsula energy limited

Ann: Quarterly Cashflow Report, page-52

  1. 8,294 Posts.
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    This chart shows clearly what happened.

    And doesnt include the 28% drop today.

    Fair post , but the examples you gave of conslidation prices being higher are all years after the fact, which in those years had a uranium bull run, so as you say "would have even if they did not consolidate" and dare I saw would have been even higher, I was more replying to the consolidation rather than your reply, the point being that consolidation hurts more than it helps. Hurts a lot more.

    Yet to hear a valid reason for a company to do perform a consolidation. Still waiting on anyone to come up with one. In PENs case, they arent trying to meet criteria to do a dual listing , so whats the reasoning? The obvious reasoning is to get the share price cosmetically higher for a cap raise, other wise what is the reason? Why on earth would they do something that most often leads to a lower market cap, cost time in money and admin, to have a negative effect for shareholders. You have already seen the negative effect now in market aniticipating the consolidation and cap raise seeing PEN is down 22% since announcing it.

    Any management that brings consolidation up, needs to have a very very good reason to do it, not just the lame and unexplained "To reduce shares on issue and create a more effective capital structure " How is this capital structer more effective? Its not at all. Its just buzz words not tied to reality in the slightest. Those who are smart can look at history of companies that have done consolidations, see that majority of them fall in the months after consolidation, and often do capital raises, so they stay away from any company thats got one on the cards, which is why there is no demand here for PEN at the moment. Thanks management.

    Ask yourself why management at PEN here have decided to signal to the market one is coming, what is the upside? Only upside I see if them being able to capital raise to retail investors at a cosmetically higher price.
 
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