While consolidation might sound like a good idea to you, if it is directed as "ditching" penny dreadful status it is a major error.
It is a sure fire way to trash the company. I was reading articles from the US warning punters to immediately sell companies that try this because history has shown that the price tends to work its way back to the pre-consolidation price as it is a psycological value for the sp. They gave a number of horrendous examples. In the US there is greater incentive to consolidate as the NYSE will kick companies out of the exchange if their price falls below set levels.
The theory is exactly the opposite of the rationale that leads to splits. So if they announce consolidation I am out of here.
CFU Price at posting:
6.8¢ Sentiment: LT Buy Disclosure: Held
