RE:RE:RE:RE:RE:RE:RE:RE:RE:Reason for this Consolidation IMHOA few points to consider re consolidaton. When any corp gets itself into a position
to have to consolidate their shares, its never a good thing. They have run the company
into the ground and have had to keep issuing shares to raise capital. Once the float
becomes too great, its very difficult to get any traction in the market and of course
the sh price languishes and is subject to manipulative trading while the share holders
suffer from dilution.
A better option IMO, as long as the co is in better financial condition is share buy
backs. A lot of the oil companies are doing this lately because their finances have
vastly improved. Share buy backs send a better message than a consolidation and
are generally recieved better as well. That said if BBD can keep improving their
market share as well as their financials, a consolidation might work out for them
in the end. I concede that reducing outstanding shares could help stop the brutal
manipulation that has been going on. If it provides some relief on that score, it
would be a blessing.