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Yes Detoxit your understanding of the consolidation is correct...

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Greenthumb2

127 Posts.

25/10/15

18:59

Post #: 16249319
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Originally posted by detoxit ↑

OK just got my AGM notes and it discusses the consolidation of shares, as a small share holder my vote will make little difference to the scheme of things, but just wanted to understand that the process they are talking about would be as follows
Example of my understanding
Current share price ......$1.00...I have 1000 shares, my shares are consolidated at 1:5 ratio so my 1000 shares are now 200 shares and each share is now worth $5.... Sorry but BBG are the only shares I hold, and I don't have an Idiot's Guide to Share Stuff, so am going from basic understanding, that the net result is fewer shares at greater value, making them a better looking share to investors, is there a possible downside.

Thanks in advance.

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Yes Detoxit your understanding of the consolidation is correct except there is no guarantee that the share price will be 5X, as it is up to the market. My experience with consolidations is also that the share price does not improve, eg MZI, it concolidated 40 to 1 a while back and its current price divided by 40 is still where it was when it consolidated but the company is in a lot better situation.

BBG Price at posting: 71.0¢ Sentiment: Buy Disclosure: Held
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