Ann: Consolidation/Split - PEN, page-131

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CHRIS77

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03/11/24

12:46

Post #: 76437627
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Originally posted by amb005: ↑

Consolidations almost always ends up worse for shareholders.

Pretty much every time there is a consolidation you can get the stock for cheaper (relative percentage of the company ) after the consolidation. ie if PEN did a 20 to 1 consolidation, it was trading 11 cents whenthe consolidation was announced so has already fallen, but its trading 0.092 now, the same price after would be $1.84 cents, but you can bet your bottom dollar you would be able to pick it up under $1.84 cents after consolidation, theres 1000s of examples of consolidations leading to cheaper prices directly after a consolidation, cant think of one example of it going higher straight after.

Infact I challenge those reading this to find an example of a consolidation not leading to lower prices directly after a consolidation, hard to find even 1 example , but plenty of recent examples of it working out bad.

Check out some recent ones WSI, ZLD, MOM, MDC, NUH, Ci1, TPD, MGT, THR, Ti1, KDY, MXC, GDA, TOE, RR1, ADX, AUZ, CZN, WNX, FGL, 1MC all these consolidations lead to new all time lows. Even big multi-billion dollar companies that do them, like PDN another uranium company did one this year and is still trading lower after consolidation, despite it being a bullish year for uranium.

Really no reason for it, takes up time and money in admin, gives the share price more room to fall, the only real reason is to make the price cosmetically higher (but lower market cap) and also allows management to do a cap raises enticing new investors with a cosmetically higher price. Whats the upside apart from this?

Any time there is a consolidation its a red flag for me and I can get out and then get back in cheaper post consolidation, which works EVERY time, yet to see an example where it doesnt work. Its already worked here with PEN, sell on the announcement at 11ents can get back in now 16% cheaper, and expect another fall directly post consolidation. Bad move from this management.

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Consolidation worked well for BOE

PEN Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
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Ann: Consolidation/Split - PEN, page-131

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