Let's talk about the "C" word.

Hi guys, I thought I would start this thread as this is something I don't know to much on, only from what I have read.

"C" - consolidation, I have seen and heard some points on consolidation so far, and some have been good and most negative.

I would really like to hear the general publics view on this,

I have gone through scenarios in my head,

We have Harry copperpot let's call him HC for short.

HC bought 1million shares at 1c they are now 10c. (Good job)

Company A says we are going to do a 2:1 consolidation.

So HC now has 500k shares @20c SP nice..

I understand if post consolidation they SP drops that's very bad.

But if say now some savvy investor that has certain criterias when inveting, let's say he only touched stocks 20c and above. (Company A now has more investor presence)

Company A in a years time or two is now @ $5 SP (yes this is all hypothetical)

Mr HC is laughing, and he has not pulled out any shares cause he has balls of steel.. and patience.

The company now turns around and says we will do a 1:2 stock split, so now Mr HC has 1mil shares @ $2.5 SP (now he is seeing $$$) and let's say company continues to grow, since the SP is lower and affordable for more investors...

This scenario is very positive, yes i know the market can be a cruel mistress at times.. and it's not all fairy tail endings..

But as far as basic principles go, why is consolidation feared?

I put it out to you lady's and gentleman, I would like to hear a healthy debate, no arguments and fighting.

Cheers

JD.