It depends on your definition of "dilution" - I hate these catch-all phrases. Sometimes companies issue stocks in order to buy out another company and their stock price goes up! It depends on the value of the purchase from the issued shares. I would buy back shares if I knew I was buying a company that would greatly increase my revenue stream and put my value in pennyland in the next year. wouldn't you?? Would you spend $100 for a top of the line Harley-Davidson motorcycle. Heck ya, even though you might have to cut-out movie night the next month for cash flow reasons, but it would be worth it - even if you sold the motorcycle down the road for a HUGE profit. Samething for EFGO - If they can make a stock trade for companies that have incredible growth opportunities and revenue streams then it's worth it. In fact - if you have ever listened to company's quarter conference call - the first thing that is always asked for from EVERY company is....drum roll please....what is your cash balance and what are you going to do with it. BECAUSE investors don't want your company sitting idol and they don't want cash just sitting around - they want it invested in new growth opportunites bringing back a return. Incidentally - I'm glad we're using our cash. If we had a million dollars (25% of our net value currently) sitting around, then we become a take-over target. Meaning another company buys us out, sells off our divisions, and uses the cash to pay off the debt it encurred to buy us out. It happened all the time in the '80s. I'm glad EFGO is not idle - I'm glad we didn't feel compelled to complete an acquisition that would handcuff us too much. I'm glad we're not tunnel-visioned and that we could see a better opportunity and so we jumped on it. I've got a lot invested here and everytime a new PR comes out a bunch of people freak out. Me, personally, I just keep getting more and more confident that they are making solid business decisions, trying to grow a company, and really doing the things to make it financially strong for the future when it's trading at a much higher PPS. just my opinion....
Remember the Widows and Orphans.
AI
