Well done Justin - using mathematics leads to a convincing conclusion, and you expressed it very clearly.
Perhaps you would use your skills to confirm the following regarding discussion about consolidation.
I don’t think that most shareholders care at all about the number of shares in issue. Daily change by profit or loss, or value of investment is simply a product of the number of shares held multiplied by the change in share price whether up or down.
If you own 1,000,000 shares and it goes up 5 cents then your day’s profit is $50,000 and the value of your investment goes up by that amount.
If after consolidation of 1:10 you now own 100,000 shares and it goes up by the same 5c, you’ve only made $5,000 for the day, and the value of your investment only went up by that amount.
To achieve the day profit of $50,000 after consolidation of 1:10, the SP would have had to increase by 50 cents.
Some respected posters have commented that you need a larger share price for serious investors to be interested. However, Thursday 27 May this year seemed to counter that argument.
When IMU SP was less than 10c, we had share price increments measured in decimal points.
However, once we reached 10 cents, the decimal points went, and since then we have enjoyed substantial price increase. The psychological hurdle of decimal point increases evaporated - instead of going up by 0.1 of a cent, we now enjoy increases measured in cents - and plenty of them, with a bucketload more anticipated!
I am happy if IMU does not consolidate, unless it can be established that there is a greater probability that the SP increase would increase at a ratio approximately equal to the consolidation ratio. I do not believe that such probability exists.
However, being a forum, I welcome any comment, whether critical or in agreement.
I have held 2 stocks previously that were subjected to consolidation - and they both went backwards.
However, they were spec mining stocks. No point comparing oranges with lemons. Also, IMU has massive potential.....
I am more than content if life goes on without consolidation. Management have not put a foot wrong (except in my opinion when previous CR at 36c cut out ordinary shareholders - but I’ve put that behind me given their extraordinary successes since then). It costs the company money to consolidate.
I am also happy not for the distraction. Multiple announcements are due in the short term, and there is no reason at all to think they won’t be positive (IND Clearance CF-33, Hervaxx P2 analysis, PD1vaxx P1 updates etc).
Summary: great company, money in the bank to fund trials, pipelines looking outstanding with some incredible results already, fabulous management, future looks positive....and my superfund and personal accounts have never looked so healthy!
(by the way, no reply from Mr Richardson at AFR, or from the Editor)
Go Imugene
PDS
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