This consolidation is moronic, but not for the reasons most on...

This consolidation is moronic, but not for the reasons most on HC would claim.

Trading at 0.1c/0.2c is ridiculous. All that does is make everyone extremely apprehensive about trading, because the price steps are literally 100% apart and no-one wants to eg sell for 0.1 when perhaps they can get double that. So, consolidate, great.

But. A 10-1 consolidation will still leave 470m SOI, and put the stock at 2c. At that level, ASX's price steps are still 5% apart.

If they're going to spend time and money on a consolidation, they should do it properly, and ensure the share price afterwards is at a level where the stock can trade at reasonable price steps, and perhaps won't be considered a penny dreadful. If they did a 1000-1 the stock would be at $2 and the relevant price steps would be 0.5%. Or, a 500-1, which would put it at $1 and similarly give us 0.5% price steps. So why not do so?

A 10-1 will be an improvement on the existing dire situation, but not as much of an improvement as they could deliver, and it will also probably just leave us needing another consolidation down the track.