RE:RE:Share Consolidation In Future......?KrapShoet wrote: Nope won't happen. Any financial advisor to Doc would never recommend it. Kiss of death to sp. Reverse splits never work. Please prove me wrong but I've never seen it work and I'm as old as dirt.
AlwaysLong683 wrote: Most big institutions won't even consider buying shares in penny stocks like DOC.
According to Simply Wall St.,, the General Public owns approximately 98% of the 293M shares outstanding, with Insiders and Institutions owning the remaining 2% combined.
One way to try and get attention is to do a share consolidation or "reverse stock split".
If DOC did a 1:10 consolidation, it would boost its share price to around 2.20 while reducing the total number of shares outstanding to around 30M.
Now, typically when a company does a share consolidation, the share price does drop pre and/or post consolidation as the market may take it as a sign the company doesn't expect its share price or fortnunes to improve much and is trying to put lipstick on a pig. However, as time passes, if the company can show growing revenues and rising profitability along with a share price that is now out of penny stock range, it could start to attract the interest of say, small cap mutual fund and other investment managers.
Bombardier off the top of my head.
Share Consolidation announced May 5, 2022 and executed June 13, 2022.
BBD.B Post-consolidation share prices:
May 5, 2022 close: 30.25 (down 8.33%)
June 13, 2022 close: 26.86 (down 4.92%)
June 14, 2022 close: 21.97 (down 18.21%)
June 15, 2022 close: 26.00 (up 18.34%)
December 30, 2022 close: 52.27
January 20, 2023 close: 62.27
Handily beat the S&P/TSX Composite index post-consolidation:
May 5, 2022 close: 20,696
June 13, 2022 close: 19,743
December 30, 2022 close: 19,385
January 20, 2023 close: 20,503
Of course, the company has to perform to achieve success post-consolidation, so not a magic bullet.
Obviously up to the company's management and BOD if and when a consolidation is done, but I wouldn't rule it out.