RE:RE:Reverse Split Experience greenday, if consolidating solely for the purpose you suggest management would only be looking at 3-5 for 1. The 15 for 1 suggests they want/need to get the float as low as possible for MASSIVE dilution through the equity raises needed to move this project forward. They have no other option based on the ridiculous off take they signed and numerous "mis steps" they've made along the way. There's is nothing further to leverage and CGN has no further obligation towards development. Meanwhile, management continues to reward themselves and has protection clauses (that they implemented) making it costly for anyone to replace them. JMO
Greenday wrote: @ geoinvested - The price direction taken by a stock that consolidates depends on its own circumstances. I agree that many stocks consolidate and then decline after the consolidation but the reason for the decline is due to some factors besides the consolidation. A consolidation is the end result of a price decline from the stock's circumstances - and not the other way around. In other words, the price didn't go down because of the consolidation.
Moreover, some stocks that consolidate don't have a choice. They have to consolidate to maintain their minumum listing price threshold price to avoid being delisted and being relegated to the pink sheets.
FCU's circumstances are different than that. FCU is voluntarily consolidating to access a larger audience. It's a big difference imho.