quietfrog appreciate what you're saying, but IMO it doesn't really matter.
As I've said before, at .001 / .002 liquidity is a problem because an uptick is +100% and a down tick is -50%.
On the other hand if you want to buy, you will have to either join the end of the 0.002 buy queue or the end of the 0.001 buy queue.
If you're prepared to pay .002 you will have no problems getting as many as you want, probably to the point of joining the top 20 shareholders.
If you're hoping to buy at .001, well, good luck with that because 322 other traders want in at that price too. Join the queue!
Selling is the reverse situation, if you want to get .002 for your holdings, well, so do 25 other traders, again, join the queue!
Want out at .001? No problems, got folks willing to buy up to 10% of the company at that price.
Bottom line is, today you sell for .001 and buy at .002, neither of which is necessarily a fair price, somewhere in between probably is, but they're the only options.
However, if a 1 for 100 consolidation took place, then you would have the option of selling out at 20c, 19.5c, 19c etc. Likewise you could offer to buy at 10c, 10.5c 11c etc. Hence the market would be much more liquid, allowing the shares to trade at realistic values.
Note that I'm not actually advocating a consolidation, though I've not been through one first hand, I've heard that any rumours of consolidation will send shareholders rushing for the exits and the downside tends to overshadow the liquidity benefits.
Of course, a positive quarterly and a good kick up to PoS would be much more desirable ways of creating liquidity....
AYN Price at posting:
0.2¢ Sentiment: Hold Disclosure: Held
