need some math skills, page-14

Monark

Stick your head in the sand as much as you like, however, for people who like to do a bit of research, you will find that when a share is consolidated, the price will tend to trend back towards the preconsolidation price. It is a terrific way to destroy shareholders value. Good companies do sharesplits. In these cases, history shows that the price will head back towards the pre split price. It is a terrific way of making money for shareholders.
Even good companies such as Ansell at $10 for a number of years, is not better of than when it did a consolidation at 1 for 10 when the price was $1.20. So what hope has this incompetent lot?
Besides management has in fact told you."We are incompetent, we cannot get earnings per share improvement, so we will get it by consolidation." This is the effect of what they are doing. Learn to read the meaning of announcement, not what they want you to hear!
Also, as one poster points out, it is almost criminal to announce the consolidation so soon after the issue. We have been conned! You may not believe it, but I do. I took up my issue for the number of shares I applied for not 1/10. Had I known, i would not have applied. Had they been serious, they could have done the consolidation before the issue and then done the issue at a higher price.
You miss the point about small holders getting screwed. It amazes me how small holders get screwed and refuse to believe they get screwed. Look what happened when the institutions got given shares. They knew exactly what they were getting. The Directors suspended the stock until the instos were allocated. How long did we have to wait? And were the instos free to sell during this period? of course they were, and, the price drifted down. I repeat. The share should have been suspended until after we all got our allocation. i didn't blame the Insto's i blamed the managers.
You tell me to blame previous management, but I don't think the Board has changed much. the current CEO is nothing short of a FW. Give me managers who want to build a business not destroy and downsize.
He is "prudent" in writing assets down. Bull Sh...., he is big noting himself, telling the world on how bad the company is and what a big job he has. The fact is that he is not up to it.

Regards


Pear