You made the massive leap to saying it will fall in price post...

You made the massive leap to saying it will fall in price post consolidation without doubt. That it happens "every single time". Stocks dipping? Absolutely. Rising too. Its called volatility and is the one reliable constant of stocks. You are suggesting it guarantees future valuation (mkt cap drops). What's your time frame exactly?

I'd concur with you that if you short sold consolidation stocks (or reverse split as the Yanks like to call it) ahead of the actions you'd probably make superior returns (and indeed if you bought split stocks - in the US particularly). Plenty of empirical evidence to say so - and when those clowns finally pick a trend you know it must be solid. But to say it happens "every single time" (the mkt cap falling) is a stretch.

I am just arguing mathematically, the actual consolidation makes no difference to the stock, the business or company. Plenty of correlation between bad businesses and a falling share price that then lead to consolidation. And that OSL has been a very poorly managed business in the past beyond refute.

You asked for examples. I can give you ample examples that refute your claim. Priceline did a split in 2003 and AIG was forced to in 2009 or faced delisting from the NYSE, Citigroup 2010 off the GFC too. The mkt gains since are ridiculous. Plenty of famous companies and just fine businesses (now) have done reverse splits like GE, Xerox, Alcoa, etc. Of Aussie companies, I think GPT did one in 2010 (and made good mkt cap gains after). Oz Minerals (taken over subsequently by BHP), CSR, Bluescope, Wesfarmers, Dexus, Lynas, etc, all have them in their share price history. All did fine subsequently.

Again, I don't entirely disagree your sentiments, particularly in the micro/small cap end. I am just saying the consolidation is not the driving factor to your arguments - its is the circumstances that led to the consolidation are. Correlation, not causation. OSL is in the crapper and has been for a long time. The consolidation hardly a surprise and more a symptom than cause of poor share price returns.