Elray Resources Inc (ELRA)

[big gains1988]

Dude, I'm afraid we are gonna have to agree to disagree on this for several reasons.
Assuming the company in question is legitimate they nearly always have to dilute through SPOs, or issue convertible stock to raise necessary funds.
So, basically the small companies options are either dilute now (SPO or RS sometimes both) or dilute later (Convertible debt that sees the float at a later time) ha.
As an owner of the stock I prefer the later because it gives the company a year of breathing room for the time being and provides incentives for both parties to see the PPS go up.
Regardless, I am long ELRA.
They are nowhere near out of the woods yet with debt though I will agree with you there.
However, your points about A/S are truly misguided IMO, because many companies never get even close to their A/S. It's just there in case they need it.
Additionally, it's kinda smart to set it higher than you will ever plan on needing it from a companies point of view because the smallest increase in A/S announcement if you get close to the limit causes absolute panic (which I've also seen)
mode from investors fearing dilution.