In my opinion there are way too many shares on the register and this is a major reason why the unusual trading patterns are holding this baby back so consistently. Right now there are almost 6 million on offer for 11.5 cents. That sounds like a lot but it only represents about 0.5% of the total number of shares.
If a 1 for 10 split were done it would make the share price $1.15 instead of 11.5 cents which would do two things:
1. It would immediately take FDL (FMS) from having a penny dreadful perception to a whole new level which would attract media, brokers and serious investors.
2. It would go a long way in my opinion to curing the negative trading patterns that have resulted from trading in half cent increments, something that has kept the brakes on this stock virtually since the 22 November announcement.
I believe a 1 for 10 split should have been proposed in conjunction with the change of name.
What do you reckon? Tell me why this is a stupid idea.
JC
FDL
flinders diamonds limited
In my opinion there are way too many shares on the register and...
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