Almost all spec stock consolidations don’t work and I have experienced many, as many spec stocks don’t have the funds to continually release positive market news drilling throughout the year. To maintain a high post consol SP. most SP always fall back. Most do 1 drill a year and SP get smashed, much bigger losses.
BRK sadly has no SP movement despite a year of BB’s, but have plenty of cash and regularly update market with regular drill successes so a consolidation could work if they maintain successes and an active drilling program. But not a a stupid 100:1. Never ever do this BRK. SH’s will lose big time as no way BRK can maintain a post consol SP of $1.00.
With 4.8 Bil SOI, SP 0.01c and doing a 100:1 way too aggressive only results in massive losses for SH’s, massive massive losses. Fact.
100:1 post consol = 48 mil SOI, SP $1.00 = Losses
50:1 post consol = 96 mil SOI, SP 50c = Losses
25:1 post consol = 192 mil SOI, SP 25c = Losses
20:1 post consol = 240 mil SOI, SP 20c = Losses
Understand those who bought at 3c for example and do 15:1 would need a break even SP of 45c to get money back. Unlikely any time soon the way I see BRK.
The higher the consol figure the worse it is to break even look at 100:1 SP now $1.00 you need $3.00 to break even. So 100:1 will destroy most SH’s fact. DYOR.
Sweet Spot imo
15:1 post consol = 320 mil SOI, SP 15c
10:1 post consol = 480 mil SOI, SP 10c
If ROG were ever to consider this only do 10:1 or 15:1 consolidation max. Any higher SH’s will 100% experience much bigger losses. FACT imo
I don’t support a consolidation the board have to step up and work hard to improve our SP back to 3-4c levels. Do your bloody job. Simple as that!!!
OR
My preference is put a for sale sigh up, and sell the assets and get a good price and exit as something is wrong with BRK/business model and with all these great successes, SP goes nowhere but retraces week after week. Market isn’t embracing BRK, is it the board something, doesn’t make sense to me. Like many on here have no idea why.
That’s my take on this rubbish consolidation chatter on here. Be very very careful going down this path as it could be even worse for SH’s if not timed right and at the right figure. Better for board to step up and do much better imo as SH’s don’t deserve to be screwed over by a simple false inflation consolidation fix, again imo. GLTA.
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