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Re: borusa post# 146670

Wednesday, 09/07/2016 8:29:13 AM

Wednesday, September 07, 2016 8:29:13 AM

Post# of 151686

I'd be surprised if after the dilution, AMD's number of outstanding shares are 1/4 that of Intel's.

(further) Dilution was expected:


Umh, is your message that the amount of shares tells us anything when comparing two companies? As if bad companies have many shares issued and good companies have little?

Dilution is bad because it increases the number of shares, basically destroying value from existing shareholders (smaller part of the company belongs to you now). On the other hand, it tells you that this company is running out of money, can't borrow anymore (debt usually is cheaper), and desperately needs money so it is taking it from existing shareholders. It may be ok for some high growth startup but for an established company like AMD, it usually signals a red flag.
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