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Ann: Consolidation/Split - AZI, page-31

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  1. 23,189 Posts.
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    Over the past 12 months or so more companies have seen growth in SP immediately after cap raisings. It really depends on where the punters see the future and how strong their belief is that the company can deliver. At the present MC the major downside risk is the current shares on issue imo as it means huge dilution to raise cash and explorers need cash. 5 to 10 bags after consolidation or even higher would be the main reason people would be investing. Pip traders like stocks with over a billion or two shares so liquidity is huge. Investors prefer the lower liquidity and less dilution. Either way it will all depend on how good management are and as always the luck of the drill.
    It is important that the company present a solid forward plan to accompany the consolidation or the Oppies will be worthless. If however the company can deliver over the next 3 to 6 months the oppies leverage will be fantastic. Atm ,002 is about fair price for the options.
 
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