I'm of the view (said it previously) that I believe the share split was not necessary. TNO was trading just fine even with the low SOI (shares on issue) of about 19 million shares pre-split. SP went from low 20s to high of about $1.02 pre-split.
If anything share split was just short-term disruptive, and provided a trading opportunity for those game to touch stocks that turned illiquid in May.
Until the increased interest a couple of days ago, TNO post-split, was only getting around 3 to 10 trades per day, despite having this 4.62 times extra shares. The table below shows TNO actually had better liquidity pre-split. If figures went back to Feb-March, this proves the point even more.
(from Iress Viewpoint)
What drives companies is market sentiment, not increased SOI. Vandium sector remains relatively hot. TNO has a very decent project, and still looks undervalued relative to ASX peers. I also think it has the potential to be an emerging vanadium market leader (in much the same way that COB emerged on the cobalt scene, while previous leaders like CLQ, ARL took a breather).
