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Re: BoilerRoom post# 17510

Wednesday, 06/09/2010 5:42:57 PM

Wednesday, June 09, 2010 5:42:57 PM

Post# of 61041
The reason it's normally bad in stinky pinky land, is because even though they are reducing the O/S, they didn't reduce the A/S. Because of that, the company can dilute again right back up to the A/S limit, just like they did a year ago. They can flood the market with millions of more shares, driving down the price, until they wind up right smack dab where they are today.

It's like printing money for the issuer. R/S, Dilute. R/S, Dilute. Each time, there are new hopeful investors replacing the old investors who got burned and bailed after the R/S and then eventual dilution caused their ORIGINAL share purchase price to become worth pennies on the dollar.