NWT woke up one morning and found that from a cash raise here,...

NWT woke up one morning and found that from a cash raise here, an issue of shares there, a parcel of shares to sophisticated investors, a printing of shares to pay the bills, employee shares, exercise of convertible notes, the exercise of options etc. that all of a sudden they had 10 billion share in the market place [and counting].

They did a 50:1 consolidation down to 200 million. This did 2 things. Gave them some credibility on a 30c per share price rather than .006c, and new room for management to start diluting all over again via the same reasons as above that got them to 10 billion shares in the first place. Almost like a rebirth.

They are currently back to 500mill and if everything exercises that is hanging over their heads will see them back to 700mill. however share price has [albeit it painfully slowly] moved up to 40c per share [at one time to 88c].

So it can work, does drag the Company out of the "penny dreadful" stigma but is not without its pitfalls. I was involved in another who were at 5c. Did a 10:1 consolidation which should have seen the shares at 50c all being equal. First day back on ASX and they reopened at 5c. We all lost 90% holder value overnight.

Not an easy decision however at some point it is inevitable. Just when is that point?