The time for consolidation is when there is steady cashflow with...

The time for consolidation is when there is steady cashflow with no plans to raise more equity. That's why most holders lose after a consolidation. Often a company is happy to burn current holders just to get more money in the door, so look after the new investors who haven't previously been scarred. It often locks longer term holders out of ever getting back square, though allows the new investors to make a short term gain so the company can confidently call on them again if needed.

It's also a great way to cover up sins of the past, especially if coupled with a name change as it then becomes more difficult to track the history of a company.

That's been my experience most times.