Ask yourself where or with whom does profit lie in share...

Ask yourself where or with whom does profit lie in share consolidations in general ?
Think about it a second or more, give it some real thought. Come on.

Does it lie with the already ensconced shareholder of a company ?
Does it lie with entities outside the company who can short the share once a company consolidates??
Does it lie with those able to benefit from companies' capital raisings ? often on the way down again?

If as has been stated by others, for argument sake, most companies that consolidate their market capitalisation hold at their original capitalisation for a short time (a no win for preexisting shareholders) but soon head South ... and South 90% of the time as quoted here several times by my learned colleagues. So who stands to profit?

Not minority preexisting shareholders of these companies that much is clear.
Shorters perhaps? Day traders perhaps?? Possibly all the way down until capitulation by long term holders occurs.

And so to owning rather than shorting:
Who would be so bold as to consider buying till they see how the wind blows with the salesmanship about consolidations?

When and at what price post consolidations do the real players show their presence?

Will preexisting shareholders benefit with odds like that?
Hoping that good news will halt a short spiral to a significantly lower levels of market capitalisation is often a pipe dream based on most publicly listed companies histories.
Ah, but this time it's different I have heard.

At a very low share price shorting is very problematic. Market cap and percentage price swings are just too dangerous; too large / too quick. Thus there is no ability to gain easy profit. Shorters do not like those companies . Artificially inflate the share price to any number North with "consolidation" based on a questionable promise of perceived benefits, and suddenly there is lots of room to move. Not for the real holders but the Shorter(s) who can then press home their (unfair?) advantage sending the prices South much much more easily...and profitably. This seems a well travelled road in the sharemarket across the world.
North is a harder more difficult route to profit.
South is easy with momentum shorting.

If you feel anxious, keep your chin up, someone will probably profit from it . Mathematics Probability Theory will give you a clue as to where shareholders will be after consolidations.

And so the cycle can then repeat or continue. Most likely with a lot of previous shareholders no longer heard of.

One can only wonder what percentage of company directors held significant pre consolidation shareholdings in the companies they managed whose Market Capitalisations subsequent to consolidation went South.

DYOR