Trading Halt, page-54

Whilst consolidation may affect short term price movement it should not in the long term. If a company is valued at say 1 billion and has a billion shares at $1, 10 billion at 10c or 100 million at $10 the company is still worth the same.

The long term value of the company should be represented in its profits and predicted profits. The number of shares on issue may affect liquidity and encourage short term traders but in the end it is the money the company can make (or assets that can make money) that determines companies worth.

When investing in a company I have e never thought how many shares are on issue, although I may consider liquidity and major shareholders.