Goes to show how little understanding of the basic principles of stock market participation there is amongst the retail holders. It is somewhat appalling and disturbing seeing those comments.
I’m certain that this is just the ‘tip of an iceberg’ - as the majority of holders do not have Hotcopper accounts to voice their (unfounded) concerns.
Regarding the consolidation itself - I am not a big fan of consolidations at this end of town (microcaps). The risk of further dilution and SP falls is amplified as the future SP movements are (now) x5 amplified against the pre-consolidation assetbase/positions of the existing holders.
Whilst that would not be a problem for a multibillion capped entities, for this minnow it potentially will be. I’ve seen enough consolidation damage across many stocks over the years and it’s rare for the SP to maintain post-consolidation level, I am not saying it’s impossible, but it is rare and more often than not the existing LTHs end up massively diluted.
EMN Price at posting:
5.8¢ Sentiment: Buy Disclosure: Held
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