Another myth to bust...
When companies consolidate shares they invariably do poorly.
People who know what they are talking about have this to say...
Yes !!! Perfect example is a company whose share price drops to .50¢. So they consolidate 1 for 10 which makes the share price look like $5 again. But the fundamental "pit" problem didn't change, and invariably, that company will continue to drop making it seem like the consolidation had something to do with it... coincidence ?
Companies that just have too large a share base and want to pull it in a little to have it more manageable, especially if they want to be positioned to be taken over, will consolidate just fine and shares will continue to go in the direction they have been for the past several months providing nothing changed in their fundamentals. We may see our volume drop accordingly but it is at healthy volumes now.
JMHO and what I've read and heard from reasonable reputable people. But then they are in the equities game so...