CHM chimeric therapeutics limited

With consolidation the share price always goes to a lower market...

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    With consolidation the share price always goes to a lower market cap after consolidation show me an example where it didnt go to lower market cap directly after consolidation, you might say in theory it stays the same, but reality it does not. Consolidations almost always ends up worse for shareholders.

    Pretty much every time there is a consolidation you can get the stock for cheaper (relative percentage of the company ) after the consolidation.

    Infact I challenge you to find an example of a consolidation not leading to lower prices directly after a consolidation, hard to find even 1 example , but plenty of recent examples of it working out bad.

    Check out some recent ones WSI, ZLD, MOM, MDC, NUH, Ci1, TPD, MGT, THR, Ti1, KDY, MXC, GDA, TOE, RR1, ADX, AUZ, CZN, WNX, FGL, 1MC, EFE all these consolidations lead to new all time lows. Even big multi-billion dollar companies that do them, like PDN a uranium company did one this year and is still trading lower after consolidation, despite it being a bullish year for uranium.

    And im sorry not sure if you understand market mechanics but the overhang remains if there is a consolidation, its just at the different price

    Over 625 million shares have been issued at $0.008. That overhang is a brick wall for price action.

    Another 625 million options at $0.008 are waiting to pile on top of that.

    You’re not just dealing with a little dilution here. You’ve been diluted by over 50% already, and if the options are exercised, it’s over 100%. That’s your investment being cut in half (or worse).

    krushingit.png


    Your analysis has not been exactly "krushing it" in its accuracy is it?

    Look sorry but, I think you’re being a bit delusional here. Even without all this dilution, the share price has been in constant decline. It’s not like things were thriving before.

    Now let’s keep it simple:

    With all these new shares flooding the market, ask yourself: does that make things better or worse?

    Seriously, it’s a binary question. If you can’t answer that honestly, even you must feel the nagging tug of reality telling you you’re a bit too attached to this holding.

    You know the answer. And here’s the reality: this level of overhang doesn’t just evaporate. Happy to be proved wrong, but let’s not sugarcoat it—diluting a company by over 50% at all-time lows is not some masterstroke of financial genius, its not a positive by any stretch, which is why the company is trading at all time lows now and being offered this all time low, and my bet will likely hit a new all time lows at 0.006s this week.

    You can hold and stay optimistic—that’s fine—but let’s keep it grounded in reality shall we? There’s a reason this company is scraping along at all-time lows. I’m not being purely negative here, just calling out the obvious. And honestly, I hope you do well. But what I detest is seeing serial ASX players like Paul Hopper treating the Aussie public like an ATM and watching holders like you defend them after they’ve cleaned your pockets.

    Look, could there be opportunities here? Sure. With a low market cap and some cash in the bank, you’d hope so. But let’s not ignore the elephant in the room: more than half the shares on issue are profitable above $0.008. That’s a massive overhang to work through. It’s plain, it’s simple, and it’s going to make any recovery an uphill battle.
    Last edited by amb005: 10/12/24
 
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