I see the share consolidation have been approved.
I voted against this but knew it will still pass. I hate share consolidations as it has never added value to any of the shares I held in the past that got consolidated. Most of the time the shares lose 30% + of their value post consolidation.
I know that in theory a share trading pre and post consolidation should be the same but I always maintain that at share pre consolidation at 1c have zero downside where post a share consolidation of lets say 100 to 1 that new R1 share (100 x 1c) now again has a 99% downward potential back to 1c. My opinion is management must work to get better earnings and eps shall be the determining factor to move the share price.
I am considering selling. Can anyone maybe give me a reason why this consolidation will work that I might be missing.
Looks like my estimate of 30% down after share consolidations was a bit off. I still see no value in share consolidations as the shareholders take all the risk of exposing themselves to the downside again and yet it happens time and time again where shareholders approve the consolidations. Why I ask you , why????