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Gold/Mining/Energy : Innomat Solutions Corp (INAT - was Stackpal, STAX) -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Siu who wrote (318)	5/13/1998 4:51:00 PM
From: terry astle	Read Replies (2) \| Respond to of 580

Hello Maurice. Not necessarily bad for the stock. A consolidation as you probabily figured by now is a reduction in the number of shares outstanding by exchanging 2 or more current shares for 1 new one. It's usually done to improve the company's marketability by reducing share float along with a more attractive price. Investor's look upon consolidation negatively for a number of reasons, a few of which are. 1. It leaves investors with a smaller number of shares & depending on the amt. left they may have to buy more just to obtain a board lot. 2. Frequently, the share price will fall after a consolidation ,leaving the investor with a bigger loss than before consolidation. 3. It makes it more difficult for the stock to move up percentage wise. Consolidation is risky but doesn't always have negative consequences. If a company can consolidate & back it up with positive news/results the share price will usually rise. In the absence of the above it's going to fall. Hope this helped. Regards.