Hi newbie, There's published research by a wide variety of...

Hi newbie,

There's published research by a wide variety of universities and business schools which suggest a fall in shareprice is not a noted or guaranteed outcome of consolidation.

Most reports I have read don't suggest a correlation, and in fact there seems to be no causation in shareprice or mcap movement from a consolidation. That is to say, a good stock going up will keep going up and a bad stock going down will keep going down.

I'll post you some links if you like, on my phone right now, but there's lots of good info on Google Scholar.

I know there is latent beliefs on HotCopper about consolidations but I'm not sure they hold true, other than the obvious fact that a company has so many shares on issue to make a consolidation relevant