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Re: bradakus post# 150838

Monday, 11/08/2010 6:33:41 PM

Monday, November 08, 2010 6:33:41 PM

Post# of 241130
This statement is correct under the assumption growth will remain stagnant, and all dilution is bad dilution.

But like shares of stock or dollar bills...the more that are printed the less they are worth regardless of the worth of the company or the GDP of a country.



This topic has been discussed many times here and elsewhere, and the views differ depending on what side of the fence you're on.

Example: If I sold 100,000 dollars worth of stock at .005 when the share price was at .01 for capital funding/growth, that would seem to be a bad decision which devalued the remaining share outstanding due to the increase in outstanding shares. This proves your point.

What if the company used these funds for a successful growth initiative venture that increased the company's revenues by 1 million dollars, which in-turn increased the value of the company to .02 per/share, or doubled the market cap. Would that make the shares worth less? Of course it would from a dilutive value, but not from a shareholders prospective, since the capital raised increased the over-all value of the company.