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Re: ADVFN_blackj post# 21644

Tuesday, 09/02/2014 10:05:42 PM

Tuesday, September 02, 2014 10:05:42 PM

Post# of 26343
If the company borrows money, the increased debt reduces share value even further. Credit lines come at a price for they are never an outright gift. Being able to borrow money doesn't necessarily mean that the company borrowing is a great company. It indicates that the loaning company believes in things we shareholders may not be able to see.

I'm seeing a lot of credit being given to Dutchess and FDMF because of money made available for loaning purposes. And dilution is guaranteed when the company borrows against its credit line. Borrowed money should never be confused with a corporation's bottom line for debts are either paid back of bankruptcy will be declared.
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