Veltex Corporation (VLXC)

[Rawnoc]

That can be debated, but generally you are correct.

However, there are exceptions especially if the convertibles are at variable prices. Sometimes it is better to keep the shareholders in the dark so it converts at less dilution. Rarely though. The example I can think of is my favorite stock for 4 years now....ABRX. Diluted the piss out of us while keeping us in the dark about it. Pissed a lot of people off. Company eventually no longer had to do it and stock is up nearly 10 fold with sales/institutions/profits growing regularly. The dilution was needed to get us where we are at and the hype from management for a short kept the dilution rate low ;)