To me, a share consolidation is bad news or cause for concern.
It signals to me that the company management doesn't see a significant improvement in the share price for some time.
They may even be using a consolidation to make the shares look a bit more respectably priced in preparation for even lower prices ahead; so the shares may be £2 after consolidation, only to slide back to 20p in a few years time after mass PIIGS defaults or devaluations - whereas if the shares aren't consolidated, an equivalent decline would take them to a ridiculous 2p.
