CNN 6.25% 15.0¢ cardia bioplastics limited

Garbage, the market cap will be exactly the same, because no...

  1. 34,916 Posts.
    lightbulb Created with Sketch. 480
    Garbage, the market cap will be exactly the same, because no investor in their right mind would invest in a penny dreadful company that makes continuos losses. And if the trend continues, than the share will slide back to $0.002. And you will have destroyed 90% of the wealth.

    Not garbage at all. I talk to many investors outside HC and all of them laugh when I mention CNN because of the share price. But when I discuss with them what they're actually doing, they show some interest, not necessarily to invest but to at least learn a bit more. It's psychology. At .2c they don't even bother investigating any further. There are plenty of tech stocks on the market with marketcaps well north of CNN with much less potential purely because they are not dragging around at .2 of a cent.

    As for the share price sliding back to .2c after consolidation, of course that is possible, but only if they continue to issue loads more shares. Quite simply, if there was say a 10 to 1 consolidation, so .2c to 2c, with a marketcap of $7mill, if it was to go back to .2c that would be a marketcap of $700K. That of course is unheard of and would never happen. The slide back would have NOTHING to do with consolidation but all to do with the company performance and most importantly the number of new shares issued. There is no downside to a consolidation from here, the marketcap is very close to as low as it can go realistically (give or take a mill), shareprice performance is a disaster and does not reflect the progress of this company and the potential.
 
watchlist Created with Sketch. Add CNN (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.