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Re: TenKay post# 110369

Wednesday, 01/10/2024 9:59:26 AM

Wednesday, January 10, 2024 9:59:26 AM

Post# of 111466
Dilution is ever present in the OTC, even the good ones need to do it to fund operations. It's literally the reason private companies go public, and yes very often it screws over shareholders. Dilution adds a certain amount of supply which obviously impacts the supply vs demand dynamic, and the more the supply outweighs the demand the more it will go down. That said, if the demand is heavy enough, it will outpace the supply added and in a strong enough market a company will be able to get a lot of bang for their buck so to speak. Like I said, a company will ALWAYS prefer to raise capital into a strong market for their shares, and in those scenarios it often will behoove the company and shareholders because the demand is outpacing the supply and the company is using those funds to help grow the company.

So of course he needs cash, but he also is sitting on a massive opportunity to raise quite a bit of it into a very favorable market. Dilution is just one part of the system, if you're looking at it purely in an either or/ binary aspect, you're missing out on lots of nuance so of course you won't see a major breakout setup staring you right in the face.

I only wish I could buy this opportunity more aggressively.
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