perhaps I should put it a different way. What would the share price be if the 10:1 consolidation hadn't happened? It would be 6.2c. The only difference would be that you would have 10X as many of them.
So comparing post consolidation sp with pre consolidation sp *without* doing an adjustment is completely pointless :)
The sp is a completely meaningless number unless it is taken in the context of the number of shares on issue. Then it starts to have some meaning, in that the market capitalization can be worked out, however that is just an indicator of what the market in general thinks the company is worth, and still may not be a true representation (no I don't subscribe to the efficient markets theory, at least not in it's most pure form).
I think SXY is currently looking overbought on the monthly RSI and I'd not be surprised to see a retrace, however it is quite strong at the moment and the 60c mark is a significant one so hard to tell.
Tony.
SXY Price at posting:
60.6¢ Sentiment: Hold Disclosure: Held
