entitlement offer closed :), page-26

tongaface on the contrary, I welcome a discussion on any topic, there are many investors who are following this company and they are doing an admirable job on the following of the fundamentals as the details are released, so I leave this exercise to them, they have their head in that space far, far more than I do.

But I do notice from time to time there are those who see a consolidation as a remedy to recover an ailing or a falling SP, all I've been trying to do is point out the fallacy behind this extremely simplistic reasoning.

Using the companies you listed, regardless whether they used a 14 day or 30 day for their VWAP calcs., 14 days is unfair and doesn't give the shareholders a true value after a consolidation as management have thoroughly stitched them up....USUALLY, as these consolidations are generally undertaken after SP sliding and as an excuse to cover up just one thing, and that is bad management.

Take just one of your examples, VLA 30 day VWAP was around 0.069 before 10:1 cons., now even after what is considered really good news on China which pushed up SP a lot the last two days SP is still only 0.530 = FAIL

CCC is still early days but 30 day VWAP was approx. 0.034 afetr 10:1 cons. now SP is 0.295 = FAIL

OZL by memory 30 day VWAP was around $1.45 before cons. after 10:1 it's right now at $12.00 = FAIL

SBM 30 day VWAP approx. 0.450 before cons.
after 6:1 cons. it reached a high of $2.80 and then dropped to hang around a low (and lower) of $1.80 seven times since the cons., now today's high is $2.18 = FAIL (a 6:1 cons. = SP of $2.70 (nearly a 20% fall based on today's value)

This figures are a very close approx.

So why does the SP usually fall after a consolidation?

It's actually the same reason the proponents give for the consolidation, % movement per tick is huge before cons., so many holders who have resisted selling because the % drop per tick is more than their gut can handle will find that post cons. they are much more comfortable to drop their stock into the bids, but as these bids are then usually gobbled up fast the SP can end up falling the same % amount anyway.

Think about it and look at the history of others, consolidations often make it easier to drop the SP

$8,000 currently buys 2 million of GGE
After 10:1 cons. $8,000 will buy 200,000 GGE

But it's the same % of the company's MC, it's the same brokerage cost, same company operation, same company contracts, same company employees, same company heads pulling the strings, and the same way they pull those strings

The share numbers associated with current MC or the trades have very little bearing, it's the MC relative to perceived or actual value of the company's future prospects. Once again I ask is a consolidation going to change this????

My view only and a consolidation can't undo the errors of the past, it's Band-Aid treatment when they have run out of all other options or when they want to raise capital.

Usually it's management setting up the market to raise more capital, as most mind-sets more agreeable to parting with more of their hard-earned if the SP is higher (even though it's through a cons.) and also when there is far less script on the register.