Manipulation, page-120

Hi kiwi, hope that my below observation may help

I did not understand the value of consolidation until one of traders commented on ICG some 9 month ago:

"I like the potential upside but you have to many shares on issue"

I replied to his comments asking what is the problem, what difference does it make on how many slices is Pizza divided, it is still the same attraction to the hungry person

Hey explained that the buy/sell spread is to large therefore high risk of entry.

Should he enter at 0.2c and want fast exit for any reason it is potential 50% loss. He was to enter as long term but still needs to be able to exit with a limited loss it circumstances change.

This gave me an understanding that but having the price range where we are limits the number of potential buyers therefore the demand for stock is reduced.

The price is balancing act between demand and supply therefore reduced demand keeps the SP down.

Looking at my experiences with SP after consolidation in stocks I have or had: no negative influence noticed.

Recently GTE which was in 0.1 to 0.2 range was consolidated @ 60 to 1 and has gone as high as 15 c as low as 8c and 11c right now which is close to top of its range not withstanding the fact that it was heavily diluted in a placement which they have done at: just 1c on post consolidation (sharks got instant Disallowed but GTE had only 40k cash because of aborted underwriting agreement and cancelled CR) plus rights 3 for 2 at also 1 c post consolidation. One would think they would be max 2 cents considering such crazy CR.

Research all past year announcements of this company for better understanding.