Reverse Split or Share Consolidation or Share RollbackI am not a big fan of reverse splits, I don't like the term share consolidation because to me it sounds like the company is gaining traction by reducing the amount of shares.
NP talked about Auteco doing a reverse split of 15 to 1. If Maritime Resources announces a reverse split, at their AGM, I will sell my shares post consolidation and buy back in after the shorts have reduced Maritimes value. When a company has a reverse split at say 10:1 and you have 10,000 shares and it becomes 1000 shares it makes most investors feel much poorer, so they complain and sell, and the price of the overall holding drops. That is why the short sellers move in on an announcement of a reverse split or like the company likes to call it a share consolidation.
The only time I am supportive of a share rollback, reverse split, or a share consolidation, is when a company is uplisting on a major exchange, or for a merger transaction.
Cheers!