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Re: noquit post# 11474

Friday, 07/02/2010 4:29:30 AM

Friday, July 02, 2010 4:29:30 AM

Post# of 38585
There isn't any difference to the shareholder. Dilution has the same effect on stocks as it does in currencies. If I own one share out of a million shares, then my value is one millionth. If they print nine hundred million more, my one share is now worth one billionth. The more they print, the less existing shares are worth, and the more the downward pressure will increase. There isn't much hope that they can out earn their inflation rate of increasing shares, even if their business plan was sound. It would take an incredible volume of buying just to consistently move a float of over a Billion shares, especially with the inclusion of a substantial shorting activity. Eventually, when there is little value left in the share price, they will have no choice but to do a reverse split, because people with talent will only work so long for nothing. That's reality.
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