tob999 & ALL, respectfully, with any dilution...
Respectfully, any increase in the Outstanding Shares (OS)... be it the restricted shares or the float... is dilution. However, any dilution that is used to either grow the company or position the company for growth should be considered ”good dilution” for a stock. I have explained this before in the past within other forums and I will try to explain it here.
A few are here trying to claim that ”bad dilution” is happening ”now” with SRGE, but that is not the case at all as there has been absolutely no dilution at all over the past few months. Actually, we had been seeing the ”opposite” of dilution since the company had reduced its OS down to 545,874,868 shares. In my opinion, this confirms that any dilution will not be reckless based on their previous intentions and actions of reducing their OS.
Dilution is any increase to the total Outstanding Shares (OS) regardless to whether it is the restricted or float shares. If the shares never leave the Treasury of shares sitting within the Authorized Shares (AS), then that is "not" dilution. However, if they issue the shares to still be restricted shares, it will increase the Outstanding Shares (OS). Any increase in the OS is dilution.
OS = Restricted Shares + Float Shares
It doesn’t matter of its intent good or bad. Dilution, as its true definition, is dilution. However, as I have explained before in previous posts… you have ”good dilution” and you have ”bad dilution” that exists with any stock. Everyone, please understand that “good dilution” is used for growth. I think anyone thinking that dilution is of a concern here with SRGE is definitely viewing the ”glass half empty” versus viewing the ”glass half full.”
Hopefully all see this point that I am making. Let’s be clear about why any stock that you, I, or any of us buy within the market exists to trade. Any stock that trades within the market does so to be able to hopefully use the company shares as leverage to grow the company until the company earns enough profits from its product, business, or service to where shares are no longer needed to raise capital or be used as leverage to buy assets or grow/fund the company. SRGE has proven that any increase in shares will be for ethical reasons of growth. Even still, when you go look at the major market stocks that become profitable (or obtain funding/support), shares are used to lock in the support required for sustained growth.
Bottom line, SRGE has earned the respect from investors as they have shown that any dilution would be ”good dilution” which will result in the growth of the company operationally and the growth of the company’s stock to benefit shareholders. It is very obvious that any dilution ”WILL NOT” be to line the pockets of the management or for any unethical reasons, but instead will be used to grow the company. I, like you, think more respect should be warranted for their actions up to date as I am sure that it is not easy running a public company and making sure all things are in order. I’m seeing the same light that you are seeing at the end of the tunnel for us here in SRGE.
SRGE has already proven that it is not a “stinky pinky” within the market. The increase in the AS was not significant enough to bring concern and leads me to think that something major has either closed or will be closing very very soon because of this action. I think we will be better than fine here with SRGE.
v/r
Sterling
