One relevant factor that sometimes gets missed is that it allows much more orderly increases and decreases to share price and MCAP.
Let's say you held a real penny dreadful shell stock at 0.2 cents, then you either lose 50% if it goes down or gain 50% if it goes up, per pip.
Another difference is that above 10 cents the pips change to 0.5 cents rather than 0.1.
A lot of institutional investors - even the speculative ones - require a certain share price level before investing in a stock. Consolidation can help to tick this box. This will undoubtedly be on the mind of NTL board and management as it emerges as a producer.
However, in practical reality, it doesn't really make difference to the proportion of the company held by shareholders.
NTL Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
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