trying to work out what advantage is having a stock consolidation. all my thoughts as to why still makes it a zero sum game imho - its the amount of your dollars your willing to invest in the stock than the amount of shares you end up holding.
few fanciful thoughts
1. consolidation makes us looks less like a penny dreadful - no that's not really the case unless the company is making a profit - consolidation doesnt hide anything of the past performance of funds usage. In fact consolidation can make it look worse at this point in time in my opinion, it gives opportunity for further dilution.
2. script offer - no not going to matter to offer 10000 peaks to 1 rio or 100 peaks to 1 rio share.... zero sum.
3. liquidity - not sure liquidity is based on amount of shares on offer as opposed to the amount of dollars wanting to buy or sell the shares. if that was the case - consolidation would help reduce the risk of a takeover by removing liquidity on market to predatory behaviour. brokers can already sell 100 shares at a time not incurring brokerage fee's the average person on the street pays.
4. if a fund had to invest x amount of dollars in a certain part of a industry like renewables that could be helpful for the demand buy side - but we might be a long way off before we meet many of the requirements to having that type of interest. i would think more risk would need to be cleared before that type of activity happens on the register.
5. POSITIVE ramifications of dual listing in the UK perhaps? - no idea if consolidation does anything for this happening in a positive way? i guess the less shares out there and the more people chasing seems inflationary and that's got to be good for the stock price..
its probably the mind set of reaching $2 in few years time once we have all the boxes ticked and producing will now need to reach $20 in few years time that's getting my own head around consolidation - but the market cap will come once risk has been rewarded with positive outcomes.
after all said - im probably going to vote no - because id rather want to know why first before its done.
Ann: Consolidation/Split - PEK, page-19
Add PEK (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
21.0¢ |
Change
0.015(7.69%) |
Mkt cap ! $55.84M | |||
| Open | High | Low | Value | Volume |
| 20.0¢ | 21.0¢ | 19.5¢ | $31.46K | 155.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 200000 | 19.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 21.0¢ | 19715 | 2 |
View Market Depth
| Last trade - 15.54pm 05/07/2024 (20 minute delay) ? |
| PEK (ASX) Chart |