I have been trading for way too many years and I do not need a...

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voncee

5,378 Posts.

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29/11/22

18:09

Post #: 65055222
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Originally posted by Sanami: ↑

@voncee a few of your peers here are trying to explain that a share consolidation is not a bad thing for you, as an existing shareholder.

Suppose you hold $1 worth of stock - 100 shares at 1cent each. As an investor looking for a capital gain, you want your $1 to turn into $3.

If the company did a consolidation at 20:1, instead of holding 100 shares, you now hold 5 shares. However your 5 shares are still worth $1. They have each essentially become 20X more valuable.

The growth of your $1 turning into $3 is dependant on the overall value of the business increasing, not on the number of shares outstanding.

So to that point the gentlemen here have added that lifting the SP from the pennies will be a potential factor that adds comfort to big backers that will help the companies value to grow. It's naive to think that we can get to 20c - 40c without significant funds being raised. We will be diluted in my opinion, however that same capital that dilutes us is also what propels the SP forward.

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I have been trading for way too many years and I do not need a consolidation explanation to be honest and was not looking for one. A consolidation does not necessarily mean that investors will get their original money invested back based on my experience. **** Also I started investing in the lithium stocks in 2014 so I am not a newbie
From what I know when i last checked it was not on the radar.
All the best everyone.

Last edited by voncee: 29/11/22

XTC Price at posting: 0.7¢ Sentiment: None Disclosure: Held
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