RE:RE:RE:Investorfile blog post - Destiny Media TechnologiesIt seems the impact of the consolidation on the stock price was minimal.
Of greater importance is the underlying profitability of the company. In the short term, they're spending more to increase sales. This makes sense because the offering has improved and is garnering more interest worldwide. So, long term profit should be up, but short term profit should be down. (The company basically has said as much.) It seems the market is paying more attention to the short term at present.
theinvestor22 wrote: I have no idea why they're doing a consolidation - they're profitable, they have $2.7M in cash/short-term investments with no debt and they have a smallish float. This doesn't fit the normal pattern of consolidations where a company is losing money, has bad financials, has a bigish float and needs money badly. So, this consolidation doesn't fit the pattern. I suspect it'll be nothing much price wise, but who really knows?
Post consolidation, they'll have about 25 cents per share in cash and short-term investments.
For those of us who've been around a while, consolidations on the Venture Exchange have been commonplace forever. I can't remember a whole lot of them splitting shares.
Pandora wrote: Another consolidation -- wish you luck.
These consolidations are becoming as common as the day is long. And most do not turn out well.
It seems to be the latest management trend in the Venture field to drag the last pennies out of shareholders.
Many years ago companies actually split their shares and gave you more. Haven't heard of one of those in many, many years. Now it is just wiping out your holdings while telling you that the same value is there -- but watch how quickly that can vanish as the price has so much more room to fall and they so much more room to now issue more shares and dilute.
As I say, best of luck and appreciate the assurances from management.