Upcoming Catalyst, page-26

My experience suggests the outcome is dependent totally on the state of the company before the consolidation.

http://www.portfoliodirect.com.au/MiningJournal/MJ110915_consolidate.pdf

A mining explorer that continually dilutes through raisings and then consolidates is likely to continue in the direction it was already heading, down.

But a small business that has finally found its feet, is at an upward inflection point market wise, but has over the years ended up with too many shares on issue, is likely to continue to head in the direction it is already heading, up. The reason for this is often due to the consolidated stock presenting a much tighter capital structure than prior to consolidation and hence attracting more and bigger investors.