I have to completely disagree. When the O/S is increasing, which it apparently is, then the share price matters. How could the company not be dependent on selling shares when the O/S is going up?!?!?!?
So tell me what do you think?
1. The O/S is not really increasing?
2. KAA has convinced who ever is receiving these shares as some kind of compensation to do so at FMV? (i.e. Well, we owe you $50K, we'd like to pay you in 25K restricted shares that should be worth $2 in a couple of years... yeah right.)
To be fair, I can think of one valid use of undervalued shares. That would be to give them to employees who are then motivated to make the company more profitable. However, if KAA really believes we are worth say $2/share then I want to know to whom he just gave away $10,000,000 worth of shares to at pennies on the dollar.
