"If Kim buys a million dollar business with shares That is not toxic"
it is most certainly dilutive..and the whole point was the dilution..
"You see the business is called an asset"
yes im sure thats just what it will be called..but that doesnt meant it will be worth it..many things could go wrong (starting with paying too much) that could turn that "asset" into an albatross...
"Since I would assume any business he buys would have an income That would lead to earnings and those earnings are also assets"
well thats a mighty big assumption there...especially if you are going to talk about buying the business for a measly million bucks....just what kind of income producing company do you think you'd end up with for a million dollars??..and no doubt there would be some kind of new equipment needed, refurbishing, employees to be paid, utilities etc etc...it will be some time before there is any money rolling in..
in other words, the idea that a million dollars is going to cover all the costs of buying a business is pure nonsense...i know i know, it was just an example...well why not use an example thats a little closer to reality?..
personally i would never have even gone to the numbers part of the equation..just suffice it to say that there would be a whole heck of a lot of dilution..but you wanted to minimize the dilution issue by throwing out a number like 1 million dollars...no one even knows if we are talking about korea or the usa..
as for the business having an income that would lead to earnings...how do you figure that to be the case?...
i believe you are talking about a buying a business that is involved in worm silk production...but kblb isnt interested in worn silk production...they would be buying the business to turn it into spidersilk production..any income will have to come from whatever kblb does to generate it..and that wont happen for a while..so the idea that buying a company that is producing income would be an asset is simply not true...
now if kblb were to sell shares and buy a mcdonalds franchise, then that would be different...then kblb would be buying an income producing business that could be considered an asset...lol
"In case you have not researched what an asset is they would increase our market cap and therefore it would increase the value of our "diluted" shares in excess of the cost of diluting those shares"
as is usually the case on this board, there has been way too much googling here with little understanding of what they googled really means.....first, the asset would actually have to be an asset..not a pretend asset or maybe an asset or could be an asset...just because you spend money to buy something doesnt mean it will add great value to your company..
but if it is truly an asset, if all other things work out as hoped, then yes, in a perfect world, the rest could be true..but that is asking a heck of a lot...
"That is how google made their INVESTORS rich. That is how Kim will make his investors rich"
uh, no..that is not how google made their investors rich.....and i thought pure spider silk was how kblb was going to make its investors rich?...did kblb take a left turn some where along the way?..
as for the percentages and the constant references to google, i have no idea how that matters to anyone...the issue is what will kblb have to pay in shares and how much will the damage be...no matter how many times you switch the conversation to google, the bottom line is kblb will greatly dilute the shares when it buys a company...and imo the pps will take a hit...google or no google, thats the bottom line..
"The answer is obviously NO it wont hurt the PPS"
lol...unbelievable
"It has been implied in the past that our CEO only cares about his own wallet, and since he is also the majority share holder. I would say Yes, Kim cares about his shareholders"
i would say no, kim really couldnt care less about his shareholders...
"DD can be very valuable
Lacking it can be costly
Please do your own"
not understanding your dd can be very costly as well....everyone puts such an emphasis on dd as if spending a lot of time looking for details all over the net is what is going to make your investment grow....
all anyone needs to do is the basics...do a little fundamental analysis..a little t/a..check the history of the company..compare it to others..read some pr's, 10q's and 10k's...
other than that, learn how the market works..i mean how it really works...if anyone wants to spend a lot of time learning about something, forget kblb and spend your time on the market...invest in kblb, buy all that you can if you want too...just dont waste so much time doing "dd" on it...thats time better spent on the market...
and as a reminder, the market says 98% of pink sheets fail...they fail because they are scams...because they were not properly financed..because they had a dream the just couldnt fulfill...because the ceo didnt know what he was doing...because things just didnt work out for one reason or another...but the fact is they almost all fail.......and every single pink sheet company had investors who said they knew this but believed their company was the exception...and had points to bring up that made them believe so....
