SBM 7.14% 22.5¢ st barbara limited

Kev Share consolidation means, in St Barbs case, for every 6...

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    Kev
    Share consolidation means, in St Barbs case, for every 6 shares you have you will receive 1 new share, to replace your 6 old shares
    Theoretically the price of new shares should be around $2.10 to $2.20 (6 times 36 or 37 cents)

    Newcrest did this years ago when their shares were trading around 50 to 60 cents, the reasoning at the time I seem to remember was that the big boys (Institutions) weren't taking them seriously, because they were seen as small fry.
    I can't remember what the consolidation ratio was, I think 1 for 5?
    It seems to have been good for the long term health of Newcrest

    Hope this helps
 
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