lowtrade

[lowtrade]

You don't.

You find dilution by reading SEC filings of Fundamentals. Or in news releases.

Dilution is adding shares to the OS outstanding shares. (stock)
Usually by making a offer to sell, warrant exercise, or preferred share conversion.

The actual action does NOT change the value of the stock you hold. But it does effect the EPS (earnings per share)& P/E ratio (price to earnings ratio), negatively. By lowering the company performance stats.

EPS & P/E ratios are one of the ways investors judge company value and investment worthiness, on the big board.

Here comes a rant!

In pennyland most companies don't have a EPS, thus no P/E ratio. Thus no real change in the company financials really happens. So basically dilution in pennyland doesn't effect anything except the retail herds emotions.

These emotions are based on half knowledge, of oblivious penny players. Knowing dilution is seen as bad on the big boards, but not knowing if their favorite company doesn't delude (raise cash) it can never succeed like they want it too. LOL

You see IMO dilution in pennyland means the company is receiving funding. And funding in a startup is the ONLY way for them to grow.

So dilution is GOOD in pennyland. You heard it here! LOL I know, I know I'm the devil's friend with that one. But if the company is ever to grow, it has to raise cash! Problem is most penny companies don't want to grow, they want to make money.

So they delude and VC funding partners sell the shares to retail in a run. You know like all the run/retrace stocks in the IHUB cloud! Puffs of dreams in the air. I'm sorry, I'm being harsh!

But you have to learn the neighborhood your playing in. And the minute you decide to step below $5.00 you enter the wild west darkside of trading. A dangerous emotion driven, bully ridden place, that can hurt you, if you don't have the knowledge to avoid the bad guys.