TSX - The $1 stock level is unwritten, you are correct, but the insto view etc is a big driver in all things when trying to get market traction. Why go against a trend if you dont have to?
Sentiment is also a factor in the market cap comment I made. YES, all things being equal, it should not matter if there are 1.0M or 500M shares on issue. But the fact we do not believe the market is fully informed and rational in a pure economics terminology is why we trade. The market has its own behavior and sentiment which is a component of any share price on any given day - and I feel is one of the main reasons why a company which announces a coming split see's the market cap rise (i.e shares trade higher before the event but after the announcement) and companies which announce consolidation, or crunching of issued capital fall.
One last factor, companies which consolidate capital usually do it before raising more cash. That is probably the greater weight on the price as people know their is a tin being passed around again. This is also relevant in this case.
You don't have to believe my opinion at all, but feel free to do some research.
I do not doubt this company will have its run. There is too much gold in the ground and I follow it because I am a bug. The question is when, and from what base? If I had an answer I would share it. I will also be buying.
Kind Regards
MON Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
