4C Coming Results - A Realistic Perspecitve...PLEASE!, page-29

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bentas74

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08/01/21

10:59

Post #: 50029307
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Originally posted by Holdtight: ↑

Bentas, let me explain why a consolidation is irrelevant.

3b share at 5c is the same as 300m shares at 50c. The market cap is exactly the same. HOWEVER,
In general, a consolidation leads to less value for share holder. At least initially.
If you hold 1m shares at 5c( which is $50k worth of stock ) after a consolidation you will have 100,000 shares at 50c.
People will see the 50c and think, thats a "high price" and sell their stock. The share price may go to 40c and ur holdings will be $40k. However, at 4c, people will see limited down side.
In the same fashion tesla did the opposite and did a share split. The stock was $2000 and they split 5-1 and gave people 5 times the holding in stock, which meant the stock value went to $400. Now the stock "appears cheap" to investors and so it continues to rally back to currently $770...which is the same as $3850 without split.

The market cap will always be the important fact to determining price. The cap raises to buy Lifx over the past 18 months required investors who didnot want thier share of the coy to diminish required them to put their hand in their pocket and participate in the capital injection, or buy stock in the market in the same proportion as the dilution.

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Let me explain why consolidation is a must
many investors , many institutions , many investment funds WILL NOT touch a company that has a share price of 5 cents , regardless of wat industry there in or how good the prospects are , therefore i believe we should consolidate as it does not affect the share price or market cap but the optics is a lot better

BUD Price at posting: 5.0¢ Sentiment: Buy Disclosure: Held
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4C Coming Results - A Realistic Perspecitve...PLEASE!, page-29

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