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Consolidation - Possible Master Stroke

  1. 436 Posts.
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    I want to flag a possible great outcome here IF management can walk the correct but narrow path between now and the consolidation.

    One of the main problems with the SP being at the pip level is that each pip is worth a lot in terms of %. At $0.005 gain a pip and you're up 20%, lose a pip and you're down 20%.

    If management are able to release announcements BEFORE we consolidate, and the news is good, we may see the SP rally up rapidly to represent a market-cap of ~$60-$120m (depending on the results of the announcement and the market).

    And if the consolidation is done immediately after this rally, it will protect the market-cap from dropping back down as easily.

    Practically speaking - if the consolidation were to happen today, the SP would be $0.40 - then it would be a hard slog to see that price climb to $2.50. However, for example, if good news is imminent and we see our SP go to $0.008 before the consolidation, we would land on $1.60.

    Obviously the market caps are equivalent in each case. What it's about is that at the pip level, the share price takes big steps up. and if management can propel it to take some of those big steps up just before the consolidation, then even a subsequent quiet period would only see it taking smaller steps down.

 
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