Ann: NEWSAT SIGNS $40 MILLION CONTRACT FOR JABIRU, page-30

re: Ann: NEWSAT SIGNS $40 MILLION CONTRACT FO... Consolidation - If you have held NWT for a Long time Consolidation is bad - you loose equity as the shares have been diluted over the last few years(with your permission - vote) with the promise of a buy back(reduces the number of shares on the register and improves your SP - usually) and now with consolidation coming up you loose equity(your share of the company). Put it simply if when you bought shares a long time ago you had a 1% equity(% of the company), slowly over the last couple of years your equity will have been diluted to 0.1% - a share buy back would start to increase this till eventually you would end up owning 1% or more again. As well, as the company is worth more, the share price will increase as well. e.g If you have 200,000 shares now at $0.01($2000)(you probably would have paid more than this as the price has come down over the long term) and a share buy back reduced that by 50 times the share price without any upswing(which we all predict)would be $0.50($100000).
A consolidation - if held for a short time has no effect as you only would have bought 0.1%(200000@$0.01 - $2000 - e.g. only) of equity and with a consolidation of 50:1 you would still only have 0.1%(4000@$0.50 - $2000 - e.g. only) of equity in the company. Consolidation is a quick and nasty way of raising the share price to attract big end business/finance, at the expense of long term investors(not short or medium term)-i.e. investors who have had faith in the company for a long time(mum and dad long term investors)

My personal opinion is the company is saying screw the people who helped us get here we want the big money(show me the money!)