Bravada International Ltd (BRAV)

[Meerkat]

A True company looks at one thing during an expansionary phase. What is the Wieghted Average Cost of Capital(WACC).

Lowest cost to capitalize the business wins.

Debt financing does provide a tax advantage but adds the burdon of monthly expenses. He is trying to keep the shareholders just happy enough to keep capitalization requirements met.

This guy is actually trying to grow his business and not take from the bottom feeders. Dilution will only hurt him in the long run. He knows his real payoff comes the same time ours does.

Dilution can be bad in some cases but its a cheap source of capital. The question you need to ask yourself is will he take just what he needs to grow or pillage us all.