I've been holding EGO shares for a couple of years now so needless to say I'm well in the red. I actually don't mind the consolidation because it doesn't cause any dilution of my stake in EGO.
It's the fundamentals of a company that matter to me and EGO currently has a PE ratio of 4 (much lower than other gas companies) and good growth prospects.
When I look at the salaries it's only KA that's getting significantly more than the average worker in the industry. If it was 25k cash that was added to the salaries it wouldn't stick out to me as being overpaid. The one thing that I would object to is if they use 0.4c as the conversion when issuing shares to the board because I think that would be a bit misleading and inconsistent with their rationale of why the consolidation is required. In other words their rationale for the consolidation is that 0.4c is not the fair value of the shares. I would like to see them use a minimum of 0.5c or wait until after the consolidation and if they turn out to be 47c then use that figure for the 25k worth of shares.
I hope they will hit more gas but the way things are with the market, that wouldn't necessarily make the share price fly. IMO it's only when the earnings go up and debt is paid that the share price can be relied upon to respond and that's a fairly slow process.
I often read this forum but rarely write anything so GLTAH! I predict EGO will double in the next 12 months regardless of whether the consolidation occurs or not. I won't make any profit even at double the current price unless I buy more whilst they're low.
EGO Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
