I believe a consolidation is undesirable in the short term. It...

I believe a consolidation is undesirable in the short term. It could attract short positions. Over the longer term, if BLY fundamentally recovers, a consolidation is probably a good thing and a normal event as part of company recovery.

To illustrate, take a hypothetical 10:1 consolidation done now. Share price = 10c. If funds consider the fundamental position of BLY worth shorting, they're more likely to short at 10c per share, opposed to doing it now at 1c per share. 10c = more pips to play with. A pure technical play. And they've got the cash to control price and drive it down.

Ultimately the determinant for price is perceived and actual value (generally speaking), which remains the same whether consolidation or no consolidation. But if the perceived value is not strong enough to attract buyers at post consolidation levels, e.g. 10c, the big money shorts will smash it.