RE: Consolidation10 Mar 2021 20:24
UJO consolidation should have been done on the heads of some monetisation from assets, and an upward trending sp...Consolidation or reverse stock split which ever you want to call it would not be good for ujo shareholders untill placings have been completely removed from the table imo, it would just be a license to rinse and repeat and end up slipping back in sp... Consolidation in Penny Stocks... Penny stock companies consolidate their shares more frequently than any other size of investment and historically it has a negative effect for shareholders.Many penny stocks have far too many shares available because of their tendency to continually issue new stock to raise money. One way to quickly reduce the outstanding shares is to consolidate.But this tends to see the share price drop in penny stocks, also leaving the way clear for further dilution.
Researchers at the Stern School of Business at NYU and Emory University looked at more than 40 years of data, from 1962 to 2001, and found that of the 1,600 reverse stock splits, shares underperformed their non-split peers by 15.6% in the first year following the split, 36% in the second year and 54% in the third year.From 2001. The Pace of Reverse Stock Splits(consolidations) Has Picked Up in Recent Years. But Are They Good for Investors?
The reverse stock split trend continues. Just since the beginning of 2018, my quick count (by no means exhaustive!) came up with 203 reverse stock splits, and 118 in 2017 alone. In fact—with a few rare exceptions—reverse stock splits(Consolidations) are bad news for investors.
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