Consolidations have a bad reputation as the companies that need them have underperformed. When they consolidate, nothing changes other than the price and quantity. Nothing else changes - so if management have driven it into the ground, that will continue after consolidation as well.
Good companies don't need consolidation; it is the company that is the problem - not the consolidation.
Consolidation can actually be a good thing; it allows for better priced cap raises and it allows investors and institution that don't invest in penny stocks to come to the register also - hence creating demand.
ADN Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
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