Hi@Stapes66
It certainly is an interesting situation. When asked at the AGM, the CEO advised the purpose of the consolidation was twofold.
1. to dissuade scalpers from manipulating the price a few pips and hence capping the price at artificially low levels
2. to make the companies share price more attractive to large investors.
whilst both of these arguments have merit however I am not convinced this was the sole purpose. Perhaps the lower stock on issue and higher price make the company more attractive from a capital raising point of view as well and perhaps not and of course only my opinion. To that end the CEO advised that the company will always be mindful of the need to raise capital and did not deny there will be one at some point in the future. Taking a line through todays AJX ann, monies were raised to expand production and hence grow revenues, sounds very familiar to me. Lets wait and see however i did state that it is only reasonable that shareholders be offered equal opportunity to invest in discounted offerings, again look at the AJX example today which was provided to shareholders and institutions alike. The CDY Chairman has stated previously that direct insto offerings are preferred due to the fact the market is not forewarned and downside risk is mitigated. Does not respect shareholders imo and perhaps this is one reason the LMIG were not happy with this approach.
On the current buy and sell stack
@Trae is much more knowledgeable than I in this regard. The observed layering is now gone however there are many Bids/Offers that are simply Algo positions. Now that the SP is circa 40c the downside opportunity and risk is much greater than at 2c so lets see what the Algos are set to.
I would have thought the consolidation would have been supported with much stronger news and perhaps the market is still expecting something prior to a cap raise ( imo only) and hence the skinny sell to the high side. Ann > Pump > Raise > Dump.....anything is possible. Remember a company is made public to raise funds ( insto and retail ) to grow which is generally easier than raising in a private company, particularly where higher risks arise. ie Biotechs.
Still I did vote for the consolidation as i thought it was a worthwhile attempt to raise the profile.
Remember the Market is not the company and all sorts of shenanigans are played which are in no way correlated to the CEO performance ( in the short term).
(20min delay)