GREY:SXHHF - Post by User
Comment by
GACABon Jun 08, 2010 5:30am
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Post# 17167515
RE: fellow shh shareholders
RE: fellow shh shareholdersFast Eddie, the consolidation shouldn't have any impact on your investment, yes you will have less shares (like everyone else), but the share price should go up to take account of this (i.e. the market should be efficient).
Simple example for illustrative purposes:
If the market Cap of Sonomax was $15 and only fifteen shares for the company existed (and you owned them all), then the share price would be $1 per share. If the company then completed a consolidation of shares i.e. 15 to 1, then (everything else remaining equal) the market cap would still be $15 but there would only be one issued share (which you own) for Sonomax and it should be worth $15 on the open market.
Your investment would not have change in value.
Hope this answers your question.