Avid Bioservices Inc (CDMO)

[Protector]

eb0783, I think shareholders and investors look at these things from different angles.

If you only look at the PPS then dilution isn't really an issue if a stock is in high demand and after a split keeps going up. You only look at the portfolio value.

if you are into coupons then more shares means smaller payouts and that is a form of dilution.

If you are in because of the core value (as people where into mines long ago who had a lot of land that became slowly construction grade, hence high value) then more share is also dilution.

If you are in for the voting rights, possibly a competitor or other company for strategic reasons, then more share dilutes your power too.

We retailers are probably here for #1 and/or #2 in the future. So personally I don't care about shares on the shelf, I am mostly occupied with what they will be used for. What value will they bring that in turn brings other value. We don't have clinical trials anymore that may bring a total loss or very high value. With CDMO it will be invested in more production capacity and service extension and that will always return income if you make the investment based on decent decision making.

In an acquisition we'll have a return on investment curve and then paying with share seems to be a good plan, certainly if 1+1=3 (as in buying finishing company where adding their services to Avid's is an added value).