The only reason to do a consolidation is to make the price more appealing for a capital raise, no other reason for it.
Pretty much every time there is a consolidation you can get the stock for cheaper (relative to the percentage of the company ) after the consolidation. ie if IVX doing a 100 to 1 consolidation, trading 0.003 now, the same price after would be 30 cents, but you can bet your bottom dollar you would be able to pick it up under 30 cents after consolidation, theres 1000s of examples of consolidations leading to cheaper prices directly after, cant think of one example of it going higher straight after. If anyone has example of not being able to pick up the share for less post consolidation please feel free to share it, would be the first Ive come across.
Anytime a company suggests consolidation I exit straight away and can just get back in cheaper post consolidation. IVX will be the perfect example happening in real time, you watch its trading same price as ATH is now and going through a 1 for 100 consolidation, lets see it trade under 30cents post consolidation (December).
This coupled with the fact that the reason for a consolidation is a cap raise which is at a discount just makes it more of a reason to get out and back in after at the discounted price.
IVX Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
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