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Re: stevo51 post# 1473

Saturday, 01/26/2008 12:38:32 PM

Saturday, January 26, 2008 12:38:32 PM

Post# of 44164
Look at it this way. Norman George is obviously a pretty big shareholder of BDRR so he must know what they are trying to do. From the last news item out of the company, we know that they are buying MRI clinics for stock. Now would shareholders rather have them buy these assets with stock that trades at a penny a share, or with stock that trades at 10 cents per share? Obviously, the higher this stock goes, the more accretive the acquistions become for shareholders. In other words, they have to give away less stock to get the clinics.

The only way that the stock price is likely to go a lot higher is for real investors (not traders and flippers)to find out what they are doing and to understand that there may be a good future with this business plan. Issuing shares for acquisitions is not dilutive if the shares do not reduce the original shareholders "book value per share" interests. I'm sure he hired Microcap Alliance to tell this story because he wants the company to get the assets as cheaply as possible.

Penny players are often confused what the term dilution really means because it is very often that shares are just created to pad a CEO or finance guy's pockets (as in the case of USXP) and do little to really build the company. Issuing shares for the right acquistion can very often be accretive if it is done by a smart operator.








We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it. --Patrick Henry, Patriot and Hero of the American Revolution

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