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Re: nazulya post# 56518

Monday, 05/30/2016 1:42:36 PM

Monday, May 30, 2016 1:42:36 PM

Post# of 63559
Have to disagree with your assessments.

In true accretive acquisitions:
1. Don't use toxic financing at deep discounts for friends how it is done in SUNW, true accretive use straight equity exchange for assets
2. Share price doesn't collapse over 40% in accretive acquisitions like it did in SUNW
3. Holders of equities in true accretive acquisitions don't dump converted shares the following day, carefully timing their dumpage with company's positive PRs backed by cheesy promos and taking full advantage of unsuspecting retail as it was done at SUNW

And there are plenty of fundamental differences between true accretive acquisitions vs. toxic bottom financing for friends as it was done here in SUNW. imo



1. The appreciation of the acquisitions to the company far out way cost of those acquisitions (cash and stock). While cost is a one time expenditure the appreciation value of the asset to the company is potentially never ending. As far as toxic financing, if same deal was done but insiders held there shares we would not be having this conversation. With out said financing company true worth would be ZERO, PPS before financing was based on nothing more than HOPE where now (though presently at a lower level) is based on true assets of the company.
2. Share price is a victim of now being based on real numbers (revenue and profit) rather than that on mythological
evaluation of a potential revolutionary cell, which in reality had no tangible value at it's present stage of commercialization.
So where you see as a 40% decrease in stock price is just an adjustment to the true tangible value of the company, not a figment value of a company that was actually worth zero before the acquisitions.
3.Holders of equities may dump for a varies reasons. Simple reason some live for today not for tomorrow. Other may feel so strongly in the company's growth potential that bonus milestones will be so easily reached that they will have a never ending stream of new stock incentives.

True accretive acquisition vs toxic financing, is not something that can be measure in such a small time frame sampling period. Acquisition financing has a limit in both time (to convert stock) and total cost of stock and cash, while there is no limit to what the value, the acquisition can bring to the company though endless potential organic growth and time.



Acquisition:
Cost- finite, Future value- infinite.