Tuesday, June 28, 2011 3:51:23 AM
Company is at point where its necessary to raise money to buy the 1000's of tractors coming off numerous manufacturers assembly lines.
Can either raise money via debt or stock. Due to loan from Cowlitz bank,probably have to raise via stock.
But such stock-when issued-is not necessarily dilutive -if issued to a Chinese exchange for example(new investors)or restricted-meaning cannot be sold for 6 months or more.
Example of restricted would be to TYTN dealers-and with the expected pps increase resulting from substantially increased sales,dealers would probably keep(not sell into the market)such shares.
Look at the balance sheet.
Where did some of you expect the finances to come from to pay for the tractors coming off the assembly line???
You have to buy the product before you can sell it and make profit-is that so hard to understand?
So nothing about increase of A/S is unusual or surprising in this context. You need money to make money. Without increased investment there would be no sales.
With increased investment meteoric rise in sales and profit -which means increased pps down the line.
Nellies can always run before additional shares are actually issued-if they are released to market and not restricted or on a new exchange.
And remember A/S is not O/S. The company needs the flexibility to raise money for reasons noted. What good does it do anybody for the products to just sit at the manufacturer?
So don't listen to the sky is falling crowd who couldn't make money as a long if it bit them.
After 5 years company is ready to boogie. Are you?(not necessarily addressed to the poster I am replying to).
Btw Monday afternoons have been lowest pps in many stocks lately.
Imo. I'm not a financial adviser nor compensated for my posts.
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