RE:Consolidation Enriches The Board Not Investors I would have to respectfully disagree with that. There are times that doing share consolidation makes a lot of sense and is very much in the shareholders interest and is not a shyster move in any way. Yes of course there many times that struggling companies do it as a desperation move to stay above $1. But as an example, GE is doing a major share consolidation right now (or they just completed). Is that a shyster move? Or is just a very normal way to rightsize their amount of shares outstanding, which preconsolidation is in the tens of billions for GE?
quote=suomynona]
Consolidation to raise the price is no better than an artificial (i.e. fake) revaluation, real investors know that, and that's why the price drops.
Consolidation at 4:1 (bringing shares to $1.20) would reveal TRIP has to put in a buffer of $0.20 to stay above a dollar and remain in institutional investor territory...so expect at least 5:1 if they take the shyster route.
Real value is based on fundamentals like revenue, profit, and credible plans for expansion and M&A, and you earn institutional support by reaching a dollar on your own, not by steadily dropping 50% from your highs.
If TRIP has to consolidate it's just bad news, and an admission that they bit off more than they can chew... so just hope they can climb on their own and with the support of regular investing folks.
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