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Re: moorewdaniel post# 92911

Saturday, 05/28/2011 11:49:28 AM

Saturday, May 28, 2011 11:49:28 AM

Post# of 103302
On dilution!!

To me there are TWO different kind, One is good and one is bad!!

When you are diluting just to keep the doors open.. GULP.. I don't like it...!!

HOWEVER!! when you are diluting for the aquistion of a VALUABLE entitiy well then it could be a good thing..

For simplicity

Say the company was worth $1,000,000 and had 1,000,000 shares then it bought company X with 1,000,000 new shares UGH... right?? well if the new value to the company as a result(not the day or week of but say 1-2 years down the road) Went to 3 times what is was instead of say staying flat with it's current holdings... you would ONLY OWN 1/2 of the percentage you had before the dilution, but your stock would be worth 50% more because of the great value..of what we bought COMPANIES do this all the time... IT is a good thing... hey, even if in a year it adds 10% extra to the price of YOUR shares, who cares what % of the company that is..!!

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