A question on share consolidation, page-3

Coit

Forgot about whether consolidation is bad or good. In most ways it should be neutral. But traders like volume trades and they like to be able to make 5% on a single pip (eg 10.0 - 10.5 cents). This is less doable when the share price is say $1.00. So you can lose some of the more speculative interest. Also, funds and major shareholders tend to be long-term so liquidity can decline as these guys don't trade the "moves" short-term. And they respond less to individual pieces of news so if funds dominate the register its less volatile but also less attractive for traders.

I agree though that if FAR intends to progress down the development path (or at least be in a position to do so) they need to court the institutions and banks .... and not the traders .. and some of those are "mums and dads" so they may lose out.

H