RE:Understanding share consolidations."It's abundantly clear you have no concept of how destructive consolidations or stock rollbacks are, and how they affect all shareholders but especially so, those that have supported any company from an early stage development perspective. "
Yes, it's true, consolidations can be a bad deal for shareholders but I think you're making an error here.
If some company comes along and is willing to pay for something we have the share price and whether or not there has been a consolidation is irrelevant. The price that some company might be willing to pay is completely independent of the share price.
Look, if you're in this for a short time and are just waiting for the price to hit a buck/share so you can cash out then, yes, a consolidation might be bad but if you have your shares and are waiting for a buyout/partnership deal then the share price is meaningless. When the deal comes it will be an up-front payment and then milestone payments or a lump sum for outright ownership of a part of the company or a lump sum for the whole company - none of those are affected by the share price - doesn't matter if the price is 50 cents/share, a dollar/share or 10 cents/share the day before.
A billion dollars divided by 250 million shares is 4.00/share. After a 10-1 consolidation you'd have 1/10 the shares in your account but you'd get 10 times the payout - $40.00/share. It's the payout divided by the share count that matters, not share price.
Share price matters when you're buying because you get more or less shares for your available investment. Share price matters when a PP is done because it affects the dilution. Share price matters for getting listed and/or staying listed on a particular board. Share price does not matter for a company like PMN and the sort of buyout/deal that has be discussed on this board.
I like to look at my holdings page and see a bigger number than I saw yesterday but the number I see there, bigger or smaller, has no correlation to the ultimate value I expect to see.