consolidation

[KKKK]

1:100 share price will not spike to R3. more like R1.5 If you are holding at a cost of 2c, looks like you will lose out alot

[md49]

please explain why?

[#3]

On the JSE - there can only be one reason a company would do a share consolidation - and that is because the directors or an institution(s) are trying to sell. When all the 2c offers are lapped up, you can then only get a 100% reduction, whereas when you have a 100 to 1 share consolidation, you get a whole lotta numbers in-between. Sometimes companies consolidate to raise capital (because you can't price an NPL when the share price is 2c) but that is also a lose / lose situation.

[Wino]

Would you then suggest that Supergroup did a share consolidation for this reason only? I somehow think not. Companies also consolidate to reduce the costs of managing the shareholder base. I do not know AET but I do know that the local steel industry is in a major squeese at the mo.

[#5]

Ja, I am not entirely sure about hte SPG consolidation - immediately after the consolidation, they make 2 announcements 1) a R300m share buy back and 2) a R300m debt restructuring scheme. I am not entirely convinced the two initiatives are not hand in hand, but ordinary share-holders in SPG are better off. In AET's case though???

[KKKK]

are the consolidation dates right. i see it was revised to 4 jan 2013. not supposed to be today

[DaMerlin]

the consolidation is today. The odd lot offer is on the 4th

[KKKK]

where do u think the price will settle

[DaMerlin]

sellers aren't selling at bid price and buyers aren't buying at offer price so at the moment I can't be sure but i reckon around 225-250c before it slowly drops back down over the next few months

[KKKK]

there are way too little shares in public hands

[KKKK]

funny how people are selling at under R2. they should not sell at all under the R2 else its a loss.