You are very right in what you said. That is why DD is needed to find out which stocks do in fact have financing with little dilution. The past 3 years have been great for small companies to obtain financing at low interest rates. Small companies today will be the big companies of tomorrow. The trick is to find these small companies that have a chance. Be it a unique widget, a spinnoff, or a reverse merger. As a company grows so does its stock price.