InvestorsHub Logo
Followers 18
Posts 3191
Boards Moderated 0
Alias Born 04/04/2005

Re: Talc Moan post# 37016

Tuesday, 10/13/2009 9:49:54 AM

Tuesday, October 13, 2009 9:49:54 AM

Post# of 58465
Good Morning Smitty. For your future reference DILUTION occurs when a company issues "restricted" shares and washes down the value of earnings or assets. SATURATION occurs when there are more "free trading" shares that are being sold into the market then the market can absorb. In Genta's case there is no asset value as it's carying a negative balance sheet and there are no earnings to speak of so minimum dilution occurs by issuing restricted shares. Now in the case of 160M free trading shares at a cost of $.10 that could be sold into a $.90 priced market one could witness saturation which could mean a drop in price. Over the years par has been changed to $.0001 not because of dilution but saturation.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.