Seven Arts Entertainment Inc (SAPX)

[sbc357]

Another good post to keep in mind when considering the dilution:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=71137781

There definitely IS dilution and it IS diluting our value, but this post shows why it is wrong to consider that it is diluting us as severly as it looks if you just look at the OS numbers. When the dilution brings value back into the sharholders' equity, it is not considered total dilution. Each investor has to figure out for themselves if they think the amount of value brought back to the shareholders is worth the amount of dilution we have been seeing. Is there a decent balance there?


For me, I still think the dilution is somewhat excessive for as much value we have gotten back in shareholders' equity, UNLESS Peter finally gets on the ball and demonstrates to us the value coming in on these other acquisitions like DMX and BJM. It is time (past time) for him to show us what kinds of increases in revenues we will be reaping with these items, and show that they WILL add to bottom line increases to get an increase in Net Income since these items have cost us dearly in increasing OS count.

I still think this stock is very undervalued, I'm just hoping Peter won't keep diluting so much that $1+ valuation will soon be considered OVERvalued. He just recently told us that he thought the book value per share was somewhere between $1 and $1.50. If he continues to dilute as rapidly as he has and doesn't markedly increase shareholder value each time, well, it won't be long before the book value is below $1. THAT is what I do not want to see.