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Tuesday, November 15, 2011 10:04:00 PM
My hypothetical explanation, say I owned three successful hospitality establishments that were all PROFITABLE and I wanted to open a fourth. Guess what my three profitable businesses would not cover the cost of the new establishment for some time. But I knew I had a winner with my new location and it would take two years of profit to cover the expenses to cover my potential new place. Do I wait for two years of profits to open my new place? My answer is no, I would go to the bank and take out a loan to cover the expense or seek INVESTORS, thus increasing my net assets and turning more profit with my fourth establishment. This is how business grows fast. If I were a public company would I have to, dare I say……………….Dilute shares to raise capital for my EXPANSION thus generating more revenue for all of my establishments as a whole and EXPANDING my company. Does this process of funding for my company make my company a disgrace or a bad business? No it makes me more resourcefull. I am a business person so this is my personal assessment and reasoning for my holdings and continued INVESTING in Bravada. GLTA GO BRAV = IMO
IMO=in my opinion (my personal saftey harbor statement)
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