AUZ 0.00% 1.4¢ australian mines limited

AUZ - chart, page-123

  1. 1,946 Posts.
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    I'm in a spec company that has just undergone consolidation and our share price had been stable for ages, but with consolidation it dropped, because the consolidation was done to attract bigger shareholders. It can lessen the share value considerably for a holder. If I had a company with 1000 shares worth 10 cents a share, the market cap would be $10,000. Let's say there is a 2 for 1 consolidation, so we're left with 500 shares at 20 cents. Equal now, but if the share price drops to .01 (the lowest it can go without the company folding), the market cap maximum is $10 for the original setup but only $5 for the consolidated set-up. This isn't the only thing to consider, of course, but it's not necessarily a good thing. The more the share drops, the bigger percentage you stand to lose after consolidation, however, the reverse is also true. I think, if it ain't broke, don't fix it. I'm not super experienced in these things, so I'm sure others may have much more to say on the matter .
    Last edited by Newbie22: 17/12/17
 
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17 21985320 1.4¢
 

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Price($) Vol. No.
1.5¢ 3615856 7
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AUZ (ASX) Chart
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