Previously you stated that 'You can't go around with 9 bill shares'.
My reference to TLS was in direct response to your claim. Not only does TLS prove that you can go around with 9 billion shares, you can actually go round with 12.2bn shares on issue and still trade at $5.61 and still pay out annual dividends approaching 30c, Seriously!
I can understand why you would like me to stop mentioning them though as they make mincemeat of your claims about shares on issue being the be-all and end-all of a listed company's performance on the Stock Market when in reality it is all about revenues, sales and profits!
Having said all that, at least you cleared up your viewpoint more adequately in a follow-up post stating that '9bn shares on the market is way too many for a microcap.'
Had you said that in the first place then I wouldn't have mentioned TLS at all.
Following today's ASX announcement I take it as a given that a share consolidation will occur in the not-too-distant future. I guess I should look on the bright side personally, as CNN makes up just 0.0018% of my portfolio of 40 stocks, and if management do undertake a share consolidation without first getting the runs on the board in terms of sales, revenues and profits and the share price post consolidation ends up just as badly as where we are now, at least my losses will be negligible.
Finally, let me finish with a word of warning to those who think a higher share price (solely as a result of a share consolidation) will lead to an increase in investment, particularly from institutional investors. Companies such as CNN can trade at say 30c (in the case of a 1:100 reconstruction at today's price of $0.003) but if they don't have the runs on the board in terms of sales, revenues and profits, institutional investors won't go anywhere near them and guess where the share price will end up? Right back where it started, where it is now!
CNN Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
