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Re: RFB post# 41654

Monday, 04/04/2016 2:48:58 PM

Monday, April 04, 2016 2:48:58 PM

Post# of 81999
What drivel!!!

One word - dilution.



A doubling, tripling, quadrupling etc of authorized shares without an issuance of said shares WITHOUT adequate consideration has ABSOLUTELY NO IMPACT ON EQUITY .... doubling the number of authorized shares does not

doubles the value of the security overnight.



Let me try to explain my point of view in a very clear way. I will alter the number of shares that Sigma Labs currently has and would have IF the proposal to double the shares is approved (not a certainty). I will also alter the pps and the company value...

let me continue

suppose that there are 10,000,000 shares (rather than the 7.5+/-) and that the pps is $10.00 (rather than 4.65+/-) the subsequent value of Sigma Labs would be....$100,000,000 So, if a single individual had 100,000 shares of Sigma Labs, the ownership would equal 1% - either in number of shares or value - thus an equity interest of $1,000,000 or 100,000 shares

now, suppose that the number of shares doubled, but that 50% of the shares were held by Sigma labs, thus the investor would own 1% of the issued shares, thus said investor would continue to own 1% of the value of Sigma Labs i.e. 100,000 of the 10,000,000 issued shares - Sigma Labs would hold 50% of the authorized shares(20,000,000), but said investor would own 1% of those as part of said investor's ownership of Sigma Labs. Thus, the individual would continue to have a 1% interest in the value of Sigma labs' value - still 1% of $100,000,000

IF SIGMA LABS were to sell 100% of the 10,000,000 shares held at the market price - here $100,000,000 or $10 per share, Sigma Labs would have a value of $200,000,000 - $100,000,000 in prior value and $100,000,000 in cash from the sale of shares. The person who held 1% prior to the doubling the authorized shares would continue to have an equity interest of $1,000,000 but only 0.5% of the issued shares and 0.5% of the cash on hand of $100,000,000. NO DILUTION TO THE VALUE THE INVESTOR HOLDS - 50% dilution in % of shares, but, due to the $100,000,000 that sigma would hold, an equal interest in the cash on hand...thus no dilution to the investor. $1,000,000 but now rather than 1% of $100,000,000 it would be 0.5% of $200,000,000 - dilution of percentage but not of BENJAMINS

DILUTION is a very "scary term" however, if the number of shares is increased and the value of the company is increased by a proportionally equivalent amount, THERE IS NO DILUTION OF VALUE, ONLY A DILUTION OF PERCENTAGE OF OWNERSHIP INTEREST.

No investor wants to buy a security where they are cut in half out of the gate.

whoooo hooooo!! we have something upon which we can agree!!!

Irregardless of whether and how it may be used, it still dilutes a current holder of the security when utulized.

WHOAA!! ONLY TRUE IF...AND ONLY IF Sigma Labs were to receive something less than market value for the shares issues.

The real answer as to why this news does not propel the pps higher is that it will take earnings, not merely revenues but positive cash earnings to drive SGLB (SGLBD for a few more days) higher. This is ALL ABOUT THE EARNINGS... sglbd does not have earnings now. The pps will flounder. When the earnings arrive, which I believe they will occur in a reasonably short time.. when the earnings arrive, the pps will go north. Until then, these kind of connections will only serve to bolster the confidence of those who are investing NOW...

"DILUTION" is a term often used to stir emotions and create fear

FEAR IS A MIND KILLER

FEAR IS A REACTION, COURAGE IS A DECISION

(***hopefully these MANY WORDS will be viewed as reflecting some substance...LOL)


patience and GLTA