Ann: Consolidation/Split - PEN, page-132

I dont know about that:




After consolidation it traded under pre consolidation market cap for over a year.

Looking back too long like 2+ years and giving examples of a price higher doesnt work because you cant really say look at XXX did a consolidation and now 3 years later they are 200% higher when in those 3 years there could of been anything like bull run or they hit gold and started mining, its hardly the cause of the consolidation that would have lead to the higher price, they would have got the higher price regardless which is the case with BOE, a uranium bull run after consolidation is hardly consolidation working well, its the uranium sector working well.

The best way to see the effect of consolidation is the trading months after, where everything remains equal and price has stabilised, the only change being the consolidation, as then you can see a direct before and after of consolidation without having to take into account market changes and announcements that would have fundamentally re-rated the company anyway. And when you do look at those examples, even with real multibillion dollar companies like PDN, they have gone down for months and months even years after consolidation.


Just facts man, feel free to post examples of stocks going higher in the months after a consolidation, my point stands that consolidations generally (talking 95% or more of the time) lead to lower market caps directly after (days, weeks, months), so if you like the company you will be able to get in cheaper post consolidation.