GREY:WFREF - Post by User
Comment by
wilwalon May 25, 2015 11:18am
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Post# 23760688
RE:RE:Stock consolidation
RE:RE:Stock consolidationWhen a company looks at a recovery plan, they have to look at all aspects. While resolving the debt is easily the major factor in a recovery with LRE, good management will look at operating costs, admin costs, asset and capital allocation decisions.
Broadening their shareholder base is something else they need to look at and as long as this is a penny stock, their shareholder base is largely limited to penny investors and bagholders. Consolidating the stock doesn't make the company look any better whatsoever (it's not lipstick at all), but it broadens the shareholder base to larger, stable buyers who can buy on margin or who are limited to investing in non-penny stocks.