Consolidation is the opposite of splits. When a share is split it is seen as being more affordable, and soon makes strong gains....a psychological effect no doubt but a common thing especially in the USA because the share is perceived to be worth the original pre-split price. (Shareholders in the USA lovvve splits!)
The psychological effect works in the opposite direction with consolidation, where the share is viewed as being worth much less than (37 cents after) because the share is perceived as being more correctly within its pre-consolidation price range.
The company changing names will have a softening effect on the (decreasing price) perception referred to above, but Management didn't have the nouse to refer to that.
I am neither guru nor psychic - I have just seen it happen time and time again. If you don't believe me, start buying up big tomorrow.
WMT
western metals limited
Consolidation is the opposite of splits. When a share is split...
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