not too bad, page-38

I have considered the consolidation at length and think now that it will be good for the company. MPO has always had high trading volumes (in dollar terms) and this can be directly attributed to traders playing the percentages. Half a cent on a 20c cent stock is 2.5%, nice pickings really. At $1, 1c is only 1%, and alot more risk has to be taken to make the same gains. I have no doubt the number of traders will reduce in MPO. There is also no doubt that at $1 more interest will come from institutions. There is no logical reason for this from a value perspective but perception dictates this.

As for the reasons the company is doing this, they have explained in the announcement. Importantly they believe that they have a disproportionate number of shares compared to the other sector businesses.

I understand why people do have reservations about a consolidation. There is evidence of many companies that do consolidate so they can issue more shares. NWT is a perfect example. There are many others. But there are also many good stories such as TOX. TOX was one that was traded quite a bit and found it hard to get past the 10-15c mark. It consolidated 1 for 7 and almost immediately the volumes dropped off substantially and the price drove upwards.

Consolidation can be bad or good depending on the situation. What you need to decide as an investor is, do you trust what the comapny is doing, where it is going, do you have faith in management. If so there is no reason to be concerned about the consolidation. If not, then it is not really consolidation you are concenred about, but the management.