Aurcana Silver Corp V.AUN.H

RE: RE: Listen to credibility instead of praying/m

[Pepelepieux]

A share consolidation should be neutral to the value of a stock.  Shareholders end up retaining the same % of ownership in the company.  This is the same case as stock splits.  To the extent there is an effect for both, it is merely psychological.  One exception is that stock splits do allow a few more investors to buy shares if the pre-split price per share becomes too large for a retail investor to purchase the amount he/she wants (it also increases the potential to trade options as the minimum volume is 100 shares).  

In AUN's instance, the share consolidation would increas the nominal price of the shares above certain institutions' minimum price cutoff point, and may ultimately allow listing on the NYSE, which also would broaden number of people/institutions who would be able to purchase AUN.  In the immediate term, this might cause slightly more demand for the shares. This effect would dissipate in the future as those same investors would then also be able to dump those shares whenever they feel like it.  The good long term effect of both the share consolidation and the listing on the NYSE is allow for greater daily float, which should reduce the % difference between the bid and the ask price and broaden the investor base, the result of which should be less opportunities to manipulate the stock price and play similar shananigans that are so easy to conduct on the TSX.