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Re: PennyPincha post# 150262

Wednesday, 11/03/2010 8:41:53 PM

Wednesday, November 03, 2010 8:41:53 PM

Post# of 241528
As I already stated, the drop is pps is an amalgam of various contributing factors. To focus on only one of these factors is to bring attention away from the others...some of these factors are more flexible than others. Dilution occurs and is likely to occur in the short to near term and maybe even in the long term, but that doesn't mean that dilution can never be stopped or even reversed.

To fairly evaluate a stock you have to recognize all the contributing factors that go into share price. Although dilution does affect a stocks price, the effect it has is disproportionately small when compared with things like liquidity, sentiment, and awareness. If dilution was the most influential factor affecting a stock's share price, penny stocks wouldn't ever run, and their share prices would always plummet into the abyss.

Again, Dilution is only one of several factors that affect a stock's share price.

But of course the great thing about having a message board like this one is that some people focus on one thing, well others focus on other things, so that at the end of the day you have a well-rounded discussion. But to become truly informed, it is wise that each investor consider all factors and not fixate on just one.



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