What CONSOLIDATION really means.
Consolidation of shares is a last ditch attempt to survive. In realiity, it signals management FAILURE. It means that all other efforts to survive have been used up.
Some of you may have owned shares in a company that consolidated its shares. You will not have forgotten how that benefitted shareholders. Basically it led to further erosion in value for shareholders. Sometimes those consolidations also included a name change for the company. That is why it is not easy to tell all the stories. Most stories have been lost because of the name changes.
Now some of you may be able to name a company that survived and eventually did reward shareholders. But most of those shareholders would not have been original shareholders. Original shareholders would have given up long before and sold out to salvage a bit of their investment.
For the most part, shareholders LOSE in consolidation cases. The companies eventually drift and the shares drop to zero. Delisting and death.
Many consolidations have come and gone. The majority are sad stories and become BAD MEMORIES for the shareholders. Management does okay because in most cases, they received ultra generous salaries through the years that shareholders suffered through.
Will FCU be different? Because there is NO bull market in uranium, the market is telling you the answer.
The answer is a resounding NO !!!!
Someday FCU will one thing only.... A BAD MEMORY.
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