RE:ConfusedI'm with TD Waterhouse....and everytime there's a reverse split (consolidation), my shares are "frozen" for a few days...which is a pain in the neck...as most of the time, the share price goes down at first. Everybody's orders get cancelled, people are nervous and nobody wants to buy.
Is it a good thing? In theory it doesn't matter....If you own 100,000 shares of a stock at $0.01 on 4PM Friday, you'll have 1,000 shares @ $1.00 09:29 Monday. By 10 am the stock might be trading at $0.20...
In practice, it's an admission that mistakes were made in the past, or there's been some awful bad luck and the company is "pushing the reset button."
In a 10-1 consolidation, at least you're reducing the number of shares which helps in keeping the stock price up...supply and demand, but it also allows the company to repeat mistakes and drive the share price down further.
There are a number of rules on the TSX (fewer on the Venture) requiring the share price be generally above a certain level...which eventually pushes some reverse splits. And there is generally much more confidence in stocks trading at $0.50 than at $0.05...and especially at $0.005.
For Superior Mining...I think the day before the split it closed at $0.005 and it was a 10-1 reverse split eh? So the "last price" became $0.05. Looks like it's worth at least that.