A capital consolidation DOES NOT CHANGE ANYTHING about the business you are a shareholder of. It might make the shares harder to buy/sell due to liquidity constraints (less shares on issue) and this might push the price up.
The fundamentals of the business and so the fundamental valuation do not change. Some companies consolidate the share base as they are concerned about a low share price and think a higher share price might be better (ie. 100 shares at 10cents if consolidated 1:10 would be now 10 shares at $1. Higher price, same market capitalisation and same value to you).
Another great factor not to be underestimated is the new exposure the stock has to investors that do not buy into shares below 10 cents....which would be most of the big money. Consolidation allows the bigger end of town a look into the business and potential investing from them.
HCY
halcyon group ltd
