Flexpower Inc. (FLXP)

[busytrader]

How else will they raise funds other than selling shares? It doesn't matter if the current shares are under valued or not, new shares added to the O/S will always be dilutive to earnings and to the value of shares you hold because those two things are based on the derivative of all shares combined. So if you hold 10,000 shares of a company trading at 1 dollar which has 10 million O/S, your share value is $10,000. Now, if the company announced (or didn't announce) they were diluting (perhaps doing a secondary) another 10 million shares, what does that do? Well for starters, lets sat the company made 2 cents a share last Q. All of a sudden, that 2 cents turns into 1 cent. That makes your shares worth 50 cents.

I rest my case!!