Ann: Consolidation/Split - PEN, page-66

The value was already destroyed. The reason the price was going down and continued to go down was not due to consolidation. consolidation is a symptom not a cause of past value destruction. There is no strong argument that any company would have a higher marketcap than otherwise if they had just not consolidated any more than that the share price of a company would be lower if they had not split their shares. If that logic was sound companies would be splitting their shares all the time just to push the share price higher but it just does not work that way. In the long run the value of a company overall is the result of discounted future cashflows. Its a question of how much do I get paid for holding it so long. The global response to Fukushima and the continued capacity of other lower cost sources of uranium to supply the market is what killed the value in marginal producers as there was no end in sight for them not making money. With PEN right now there is an end in sight but there is still risk. The circumstances are not the same and the effect of a consolidation is not going to make a difference either way for long term holders.