My God indeed! Read this and try to make sense of it. What are "M&Ms" anyway? Must post this on the "Oops" board. Unbelievable.
As you can now see, dilution does not occur when M&Ms trade opposite to price trend. I don't event think there is a name for that, other then manipulation, which is what it is. But it has nothing to do with dilution, and dilution has nothing to do with price. Mathematically
Understanding Dilution and the OTC, is one of my pet peeves. Because OTC retailers think big boards, when they are on the Bulletin boards. Hardly 1 in a 1000 OTC companies have an EPS to effect. LOL, so dilution can't effect their company value it the first place. Whats the value of no earnings, thus no EPS.
But the value of more cash to a startup is huge! It gives them the ability to attempt to grow. Without the cash it can't. So logic says, the retail herd should be happy about dilution. After all, they want the comapny to grow don't they.
Na, they think: I heard some where dilution is bad. So I hate diltution. When on the OTC, dilution is the best news one can hear. Not only does it give the company a chance at growth. It doesn't effect their EPS value one bit, they have on EPS to effect. Plus every time VCs get there hands on large amounts of shares, they buy a run, we can trade for profits.
So dilution is a win company, win Venture capital firm, win educated pennyland trader, on the OTC. The only negative is on long & strong retail who holds to long, for the wrong reasons. Everyone else is happy as chit about it. LOL
