spot on.The only time IMHO that consolidations serve any...

spot on.

The only time IMHO that consolidations serve any practical sense is when your s/p is very low like sub 0.5c and your shares on issue are high.

Take ANL as an example. it's at 0.1c or $0.001. literally as low as low can go. MC = 25M

So think about how this trades. You need to buy at $0.001 and sell at $0.002 to make 100% profit.

but for that to occur the company would on paper need to go from 25m to 50m value. So essentially the stock just gets ground down and can't actually "trade" because it's too large a MC change for the increment of the pip. You can also appreciate that you can't exactly raise money for $0.001 no discount who would take it?

well if you're curious look at that ticker code and you'll see one of the biggest basket cases of corporate governance. So yeh that stock isn't going to provide any opportunity for people to actively buy and sell stock unless the valuation miraculously jump to 50m or 75m or you're broken playing the price match game on both sides of the spread.

So the consolidation there at say 100:1 would become a 10c stock or $0.10. and 25m valuation. it would actually allow people to find a new accurate valuation. maybe that would be 20M mc and so drops to 8c. or maybe it was actually worth closer to 30m MC and so would move to like $0.12.

As pointed out the NA have a bizarre fetish about these extremely low SOI stocks which just tends to mean low liquidity and in turn really gapped charts and price swings and albeit unfounded may still affect investor psyche.

noting I equally know of traders who won't buy stocks with low SOI because it's too hard risky to get caught unable to sell on weak spread or buy into a tiny depth. Means sometimes low SOI don't get as hard a push and money from traders compared to a higher SOI with more stable liquidity.

So yeh, agree not much logic unless at extremes of the scale.

very low price very high SOI can become fixed because price matching super hard. For ixr they are effectively 4M a pip. 2 pips 10% rise 8m on the market cap. So you can see how with more SOI the market cap jumps up or down a fair bit yet there may be lots of shares to flick around in a 2pip swing so can get stuck.

likewise on the other extreme imagine a 4000 SOI stock
at $20,000 a share MC of 80M you'd just never be able to buy and sell or if you did likely massive spreads in the depth. Might only be like 40 shares traded for the day (1% registry) and I garner they would have offer and asks with big price intervals so if you buy for 20k may never be an offer above? now your stuck.

4m a pip isn't awful for 5% movement. but equally if your a 40m MC a 4m pip starts to become 10% and thus that highSOI impact can begin to grind those plays into place and make it fairly static trading/investing.

SF2TH