Sid, Another issue pedro touched on was that, aside from...

Sid,

Another issue pedro touched on was that, aside from consolidation (which is bad for speculators as instead of 1c being a +/- 30% increment it's +/- 3%) the company will need to raise capital to buy equipment (capital costs) etc, to get the mine running.

They want to consolidate because at 28c there's less incentive for you and the rampers here to get a 1c move out of the stock and book short-term 30% gains. This helps the company attract banks and insto's into the stock who are holders, not traders. This is good for the company and its plans to mine nickel, but again, bad for you if you play short term games. Conversely, it's good for you if you want to hang on.

they also want to consolidate because then they don't look like a diluted, farted out penny dreadful stock. Its not as bad on the ASX as the US where 'real companies' have $10+ share prices, but still, everyone hates 3c stocks to death. They just don't look real.

But still, you'll end up diluted again due to the equity issue to cover capital costs on their mine. Here, my note of caution (see previous comments) is that they will not be mining by early 2008 especially when they haven't proved metallurgy or anything. So...care is needed.

Should you sell? Well, its not my role to give advice but I think you are in for a rough ride for the next few months be this a 3c stock or a 30c stock, and you've got to be prepared for the rampers exiting the stock like rats from a sinking ship as their trading increment shrinks to uselessness. However, if HCY has insto's and real holders ready to enter the stock all the ramper rats will do by exiting is give their shares to long-horizon investors who'll mop them up as they flee.

so have a think. Call a REAL investment advisor or a priest. There's pro's and cons and good and bad in this consolidation.