Owenod, I understand what you mean. The guys are correct when...

Owenod,

I understand what you mean. The guys are correct when they say that nothing mathematically changes when you have a perfect consolidation. MC remains the same. I think what you are alluding to comes under the realm of the psychology of trading.

A 'penny dreadful' has the implied potential to burst out and push to say $1 in your example.

Seeing a $1 share, without knowing the background of it, you would think this share has already boomed and that a jump to $10 would put it in the big leagues where companies in their mature life stage reside so PSYCHOLOGICALLY, your brain thinks that trading pattern is unlikely.

I fall in to this trap often and always take my attention back to the MC to refocus. Even as a type this, I want this thing to stay unconsolidated (despite knowing that reduced share volume will benefit trading patterns in the longer term) because i like the look of a 10 cent to $1 move more and think it fits the pattern of a penny stock made good.

Different people buy 30 cent shares than buy $3 shares (when looking at unsophisticated trades). You might lose some people who are irrationally scared off with a big handle while the insto and sophisticated investors would not give 3/5 of FA what the handle is.

I am not saying you are right or wrong or the other guys here are right or wrong, but we all need to keep in mind that the market trades on psychology just as much as rationality and number crunching. That's where the opportunities lie.