Sunday, August 15, 2021 8:53:54 AM
Hope this addresses all the FUD……
“3 posts • Page 1 of 1
User avatar
TimGDixon
Posts: 1497
Joined: Fri Jun 26, 2020 7:36 am
Contact: Contact TimGDixon
Dilution - that scary topic
Report Quote
Post by TimGDixon » Sun Aug 15, 2021 8:36 am
I see a lot of talk about dilution and i'd just like us to put that to rest because it hasn't occurred and all it does is fuel speculation and create anxiety where it doesn't need to exist.
Look at it this way.
Suppose today Mr. Wu says i'll write you a check for 13mm for 6 cents a share. Thats approx 216mm shares. And we fund our own trial not beholden to pharma and finish and get cell registration. Then suppose Mr. Pharaoh says i'll write you a 25 billion check for jadi lung pathology and suppose i take that check. The results of the 25bn check is a $1.00 EPS.
Lets say you have 1mm shares on average of 6 cents and Mr. Wu has 216mm at 6 cents.
You invested 60,000 and got 16x your money as your million shares is worth a million
Mr. Wu invested 13mm and got a 16x return as his 216mm shares is worth 216 million.
Did that dilution really hurt you and who had the greater risk, Mr. Wu or you? In my view you had equal risk but Mr. Wu's risk gave you a return of 16x your investment. BTW, Mr. Wu has to hold his stock for at least 6 months and on a 13mm dollar investment i guarantee you Mr. Wu is holding long to at least capital gains while you are free to dump your shares and take your profit out earlier because you will hit CG before he will while Mr. Wu has to wait a year or face the tax consequences.
Now Mr. Wu put in 13mm while you put in 60k. Your 60k is 1/16 the investment of Mr. Wu yet you both got 16x your money.
You see this scenario is leveraged dilution and what you all think of as dilution is usually connected to some toxic note that takes the company into a death spiral. If we raise capital it is restricted stock and not liquid free trading.
Don't let people stir you about dilution when they haven't even explained themselves.
Tim”
Recent TSOI News
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 05/31/2024 08:51:35 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/31/2024 04:47:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 12:46:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 12:44:01 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/30/2024 06:46:26 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 05/15/2024 04:01:05 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 10:03:21 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 07:15:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/26/2024 07:12:14 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/21/2024 10:25:13 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/20/2024 11:16:15 AM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 02/08/2024 05:15:25 AM
- Form S-1/A - General form for registration of securities under the Securities Act of 1933: [Amend] • Edgar (US Regulatory) • 02/06/2024 11:34:40 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/22/2024 08:42:55 PM
- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 01/17/2024 11:15:01 PM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 01/04/2024 09:03:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/22/2023 07:44:34 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/14/2023 05:39:49 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/16/2023 11:17:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/16/2023 11:13:32 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/13/2023 06:50:35 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 09/13/2023 05:44:55 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/21/2023 09:24:52 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/15/2023 11:10:01 AM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM