RE: % Threshold17 Mar 2019 17:20
yes, theoretically totally correct apart from one thing: your example is based on 2 days of trading: the day prior the consolidation and the day of consolidation.
now, why would you invest the day before consolidation if you definitely know that the company will go for fundraising straight after consolidation and there is chance for 20%-30% drop in the very very near future.
and even besides fundraising , the share price WILL continue to drop exactly the same way as before consolidation if The BoD doesn't come up with life changing news.
besides, as soon as The BoD announces coming consolidation, SP will start dropping fast...
so, in fact ... the most lucky ones will meet the consolidation with circa 0.03p average just to find themselves with 3p average next morning and with the new SP heading 1p-ish level