Read a few posts with the thoughts that consolidation may be on the cards.
These are purely my thoughts, please share yours
I think that shareholder value will not be maximised in the SHORT term afterwards for the following reasons:
Note that we understand market cap and this reflects share price as it depends of the shares issued.
1. should day traders jump onto this one, they will trade on market sentiment, they don't really care about the company but rather whether the share price will increase etc.
2. if the above happens, trading will be on noise and hype rather than fundamentals.
3. should consolidation not occur, a jump in price from say 3c to 15c is conceivable (500%) but I don't think that the same mentality is present for (1 in 10 cons.) a 30c jump to $1.50 even for day traders.
I think it is in the interest in the medium to long term interest of the company to consolidate, however, I personally think not consolidating is better for the holder in the short term.
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