KAT Exploration Inc (KATX)

[daggfish]

a post by Sterling, worth another look..

Respectfully, I think you are definitely viewing the glass half empty when the glass is definitely half full. Here’s how you should view KATX in reference to the 188 million shares of dilution you continue to speak of. As I have explained before… you have… ”good dilution” and you have ”bad dilution” within the market. Pick a scenario below:

Scenario 1: Would you rather KATX had done ”whatever” was done with those 188 million shares to bring about growth in the stock from .0015 to hit .093 to have currently stabilized in the .06 per share area?

Or…

Scenario 2: Would you rather KATX had not done ”whatever” was done with those 188 million shares to bring about the stock still sitting at .0015 per share?

Let’s see…

.093 ÷ .0015 = 62 times greater
(62 -1) x 100 = 6100% increase

.062 ÷ .0015 = 40 times greater
(40 -1) x 100 = 3900% increase

So, if the company is going to dilute another 188 million shares, but it is going to bring another 6100% growth spurt to the tune of 62 times greater than its current price in the .06 per share area to stabilize 3900% greater to the tune of 40 times higher than the .06 per share area, then I think we all would say to the company to please ”name that tune” of dilution once again. Such repeat performance of this dilution would bring us at a price hitting $3.72 per share to stabilize at $2.40 per share. Hopefully you see this point that I am making. Apparently whatever was done behind the scenes had worked considering where the company currently is at operationally and with its stock. I say to the company to do it again and keep doing it if it is going to bring about the same percentage in growth from our current price level. This is no doubt definitely ”good dilution” within the market.

Let’s be clear about why any stock that you, I, or any of us buy within the market exists to trade. Any stock that trades within the market does so to be able to hopefully use the company shares as leverage to grow the company until the company earns enough profits from its product business, or service to where shares are no longer needed to raise capital. Even still, when you go look at the major market stocks that becomes profitable (or obtains funding), shares are still needed to lock in the support required for sustained growth.

The transparency that you speak of could be viewed as ego… but, it depends. Please, this is not a personal attack against you because I think it’s fair for us all to want transparency, but when we don’t get the transparency ”personally” desired versus the transparency that is ”authorized” given the exchange where the stock trades, then a level of respect should be warranted given the exchange that dictate the rules and not what you, I, or any of us think. You have shown that you are intelligent enough to have understood this. Bringing up such point is truly redundant and should not be belabored.

I had explained this before, but I think it is worth going over this again as it is a solid example in my opinion of what I am referring. Take VALE Inco as the perfect example for understanding. A couple of years ago or so, VALE traded as high as $40.00+ per share with its current Outstanding Shares (OS) being 5.21 billion shares:
http://finance.yahoo.com/q/bc?s=VALE&t=2y&l=on&z=m&q=l&c=

Currently, VALE trades in the $32.00+ per share range, but before all of this, VALE at one time originally was trading closer to the $1.00 to $2.00 per share area with an OS of 245,267,973 shares back then. As evidence of how they utilized their shares to grow their company, they are now a multi-billion dollar company that has grown to bring in Net Income of over $13 billion per year while having their OS increase to over 5 billion shares.

I’m not saying that KATX is the next VALE Inco, but I am saying that you just never know. From these levels, all KATX would need to do is to just grow to a fraction of what VALE Inco has done and we would be trading at significantly much higher levels than these. My main point though is that VALE Inco is a perfect example as to how dilution is a must in order for a company to grow. It’s all about how the company uses the dilution as leverage towards growing their company of which KATX has been doing an outstanding job from the proof of which is very transparent to all.

Bottom line, Ken has earned the respect from investors as he has shown that any dilution would be ”good dilution” which will result in the growth of the company operationally and the growth of the company’s stock. It is very obvious that any dilution was not to line the pockets of the company, but was to instead grow the company which is very apparent from the events that have taken place, scheduled to take place, and from the price increase in the price of the stock. I think more respect should be warranted from what KATX has achieved thus far.

v/r
Sterling