RE:RE:RE:PEOPLE, HAVE YOU STILL NOT LEARNED??Apprentice wrote: Maybe to get new institutional investors on board?
Some insitutionals are restricted as to what Stocks they can purchase and the restrictions can extend to minimum shareprice. Levels I typically see noted are $2 / $3 and $5. Even the price the shares have been beated down to today we would be seeing a new SP of over $5 post-consolidation so the stock would therefore qualify for institutional investing by those previously restricted by the low shareprice.
Another consideration is Long-Margin. Many banks do not provide Long-Margin on Stocks trading below $2 or $3 so, again, post-consolidation, Long-Margin becomes available for investors to use who need it.
Best Regards
Q