Anavex Life Sciences Corp (AVXL)

[frrol]

I think folks are getting it. "Dilutive" is a judgement call. There are financial equations to help weigh share issuance vs licensing deal to see which adds more (or any) shareholder value but even then, those calculations require making some assumptions about variables - the probability of commercialization being by far the most important and trickiest variable. Since every investor in the market will have a different view on those variables, you have to decide for yourself which is the least dilutive path given the prospective issuance price and the prospective licensing deal terms.

My main point though is that share issuance is not dilutive per se. This point is actually lost on many financial writers at The Street, SA, etc. Usually it is made by someone with a bearish view of the company in question. When bears make bad arguments, I take that as somewhat bullish. Of course, the flip side is true too: bulls making bad arguments are bearish. In those cases, I do a self-check on my bullish case just to make sure I am not making similar mistakes.