consolidation, page-2

Jaded,

consolidation doesn't really do much for current holders, they still own the same percentage of the shares on issue, they just have less of them that equal the same value.

the only thing consolidation allows is for CFU not to be classified as a penny dreadfull. Would it be easier to raise money at 50 cents? Probably, does it change the actual situation/position of the company? No.

It's semantics and sentiment, which affect investor's judgement.

see a portion of an article from the Australian below.
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Several Australian stocks feature in KBC's portfolios, says Padley.

"We like Crane Group Limited (CRG), which has a piping subsidiary that is benefiting from major water piping projects around Australia; Babcock & Brown Wind (BBW), which is a major owner of wind assets globally, although we are obviously watching the developments at Babcock & Brown, and the levels of debt in BBW, closely.

"We also like Energy Developments, Geodynamics and Ceramic Fuel Cells. In fact, we think that Ceramic Fuel Cells is much closer to commercialisation with its Gennex Fuel Cell technology than many people would think. It has been granted approval to build a mass production facility for the fuel cells in Germany, and we expect it to begin commercial production in June 2009."

But Padley also cautions that companies that are yet to commercialise their technology have to be watched closely. "The fact is that many small companies that are really exciting in terms of what they are trying to develop, are actually very vulnerable to a situation like the credit crunch. Ceramic Fuel Cells, for example, had some exposure to Icelandic banks and a US investment bank, and have had to write off about $13 million."

No matter how effective the technology might be in the fight against climate change, says Padley, the markets don't make any exceptions.

"Investors can't be starry-eyed about some of these stocks -- if there is not an established track record of profitability, they have to look closely under the bonnet," he says.