Hi Hector,
First - welcome to Galaxy - but please don't think of me as any expert.
I don't have much time on hand to answer as I'm driving and just pulled over to grab a coffee, read the announcements and check up what you're all saying. I've read a few posts just now that I'd like to comment on but I just hope that others, who have read the announcements can correct some of the mistakes that are being put about.
I posted a few thoughts on this a little while ago on the AGM thread and although it goes through a few other things it does lay out basically why I think consolidation opens a new chapter where longs get more of a fighting chance against the easy percentage gains that shorts have been making on playing the pips in this range.
https://hotcopper.com.au/threads/agm.3362481/page-6#post-24128559
(warning: its one very long post...
)
To add a bit to that longer form thing above - I'm really glad that this is now going through.
Galaxy sp needed a circuit breaker as much as some posters here need a holiday. If we are going to find better share value we need a change of scene, we need a break of the current market strategies that are being deployed against us so effectively, and entry to the multiple dollar stock range has too many additional benefits to list right now.
I don't think you can apply a one-size-fits-all approach to consolidation.
This is a strategic move by the company to reposition the company - both in terms of how it will influence trading, a change in liquidity and the imposition of a few handy rules that make it slightly more difficult for shorts to perform a single smash and grab short.
Read up on ASIC's rules about only being able to short at current market price.
Basically it gives the market a chance to respond to downward pressure, and less shares stacked at each price point to perform quick exits.
Though some have raised ORE as evidence that the same thing can happen to dollar ranged stocks - you can not compare GXY to ORE on the rationale for shorts. Management there issued a surprise production and profit downgrade and the market reacted as it should.
They are fundamentally as different from each other as 2 lithium stocks can be.
Behind the scenes this consolidation has obviously had strong shareholder support or it would simply not have got up, and you can take BlackRock's big entry and sustained buying, fully aware of imminent consolidation, as a move to take advantage of this final period in the penny stock range.
Good luck to everyone.
Have a good time at the AGM.
Cheers
