I disagree Bernard.I don't follow US market "leads".I find it's mechanics non compatible with Australia.Example the delisting method you describe. So a recent Oz example is TOX that consolidated 12cent shares into $1.201sh[or close enuf]Anyhow it did then come under TakeOver "rumour" by Trans Pacific and ran to 250+ .
There's is a lot of selling pressure generated by consolidation by penny followers using few tick movements to give large Percent gains ie a 1cent price move is 10% on a 10Cent share while on a $1.20?irrelevant hey?This fundamental maths FACT leads a lot of pilgrims into a preference for under say 50cent shares.
Anyway,I also see CFU doing a future Consolidation if only to get d'Respectability Level for Institutional Investment especially US Ethical Funds,Mainly by dumping these Penny Ante Traders off d'Register!
I also "forsee" that such Consolidation will be joined with an exclusive listing on a Euro Exchange UK or Germany ie they will ditch d'ASX listing.
cheers
CFU Price at posting:
6.8¢ Sentiment: LT Sell Disclosure: Not Held
