dividend or option !!!!, page-27

A 10 for one share consolidation would increase liquidity and get new investors on board...

Bid ask spread percentage will decrease from 2% to 1%...Lower costs of trading would bring in new investors...

Some insitutions will not buy stocks under 10 cents a share for either psycological reasons (penny stocks are risky), constitutional reasons (outright ban on acquiring penny stocks) or because the transaction costs are high due to the increased bid ask spread...

I would expect a nil to modest increase in the share price (something like 1-3%) on this news...

As for the argument about "giving the share price more room to fall"...please tell me what the difference is between a fall of 5 cents to 0.1 cents and a fall from 50 cents to 1 cent...

In my view the best use of company proceeds would be to buy out Deutsche Bank's stock overhang at 5 cents...takes away immediate selling pressure and is a very good use of company funds to be buying its own stock on the cheap...the company can get a 60-100% ROI from buying its own stock rather than build marginal mines (assuming the shares are worth between 8-10 cents)....also the shares it takes out of circulation cannot be used to bash down the share price (long term holders not intended to sell will stay on the register)...It would only cost $10 million which is like 1-2 months profit...and gives everyone an extra 5% EPS...Excess cash should be used to support the share price when it is trading at low levels...