Understood. Much appreciated.

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YoungBuck73

11 Posts.

08/01/18

19:36

Post #: 30138005
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Originally posted by randosmit ↑

Consolidation is meaningless, except for personal psychology.

Market Capital is the thing that matters. Doesn't matter if you have 1,000 shares at $1 each, or 100 shares at $10 each, the market capital is the same.

A consolidation is simply converting a number of shares into a smaller number of shares. Like, 10 for 1.

Should NTL take a 10 for 1 share consolidation, then the number of shares would divide by 10, but the price will also multiply by 10. I mean it won't automatically, but everyone will realise and adjust their price to match so they're not losing out.

Meaning, our $35mil market capital company could be represented as:
* 2.08 billion shares on offer at last traded price of 1.5c
* or 208 million share company with last traded price of 15c

Both are the same market capital, except 15c is a much more interesting and less scary number than 1.5c ... Makes us look like we're in with the big boys a lot sooner.

But.....

Both are the same.

So talking about how many shares on offer is pointless. It is the Market Capital that matters.

However, the number of Capital Raises (company issuing more shares) is considered dilution to existing shareholders, and Capital Raises issue more shares on offer.

But even Capital Raises don't matter before or after a Consolidation. Just the fact that it happened matters.

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Understood. Much appreciated.

NTL Price at posting: 1.5¢ Sentiment: Buy Disclosure: Held
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Understood. Much appreciated.

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