Home > Boards > Free Zone > All Fundamentals > Talk is Cheap

Posted by "Strukture" on The ICTY board.

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
BuilderBob Member Profile
Member Level 
Followed By 110
Posts 11,237
Boards Moderated 7
Alias Born 10/26/07
160x600 placeholder
Correction to VC Daily on Sept. 23
Unite USA Inc., which does business as Unite Us, is a builder of coordinated care networks of health and social service providers. "VC Daily: Biotechs Seek New Skill Set From Scientists Entering Field," published Sept. 23 at 10:02 a.m. ET, incorrectly referred to the company as Unite US Inc. The error also appeared in: "VC Daily: Clean-Tech Performance Up and to the Right," on Aug. 17 at 9:36 a.m.; "VC Daily: Biotech Startups Take Aim at Fibrotic Disease Treatments," on March 18 at 9:23 a.m.; "VC Daily: Pro VC Health Pulse: Biotech Startups Offer Testing in Bid to Resume Operations; Smart-Pill Maker Proteus Files for Bankruptcy," on June 17, 2020, at 8:38 a.m.; and "Digital-Health Investor Define Ventures Raises $87 Million First Fund," on Jan. 13, 2020, at 6:30 a.m.
Sherwin-Williams Updates 2021 Guidance Amid Raw Material Shortages
Catalyst Bio Gets Orphan Drug Designation for MarzAA to Treat Factor VII Deficiency
Micron Technology's 1Q Guidance Misses Analysts' Targets
Micron Technology's 4Q Profit Growth Beats Projections -- Earnings Review
Wheat Drops on U.S. Dollar Strength -- Daily Grain Highlights
Top Company News of the Day
Front Month Nymex Natural Gas Rose 2.37% to Settle at $5.8410 -- Data Talk
Front Month Nymex RBOB Gasoline Fell 0.98% to Settle at $2.2019 -- Data Talk
Microsoft on Pace for Largest Percent Decrease Since November 2020 -- Data Talk
Corning Expands AT&T Collaboration, Plans to Invest $150 Million in North Carolina Manufacturing
Teva Pharma Shares Up 6% After Louisiana Opioid Settlement
Vodafone Spain to Close All 34 Stores, 237 Workers Affected -El Mundo
Santander to Return $2 Billion to Shareholders With Dividend, Buyback
STOXX Europe 600 Index Ends 2.18% Lower at 452.35 -- Data Talk
FTSE 100 Index Ends 0.50% Lower at 7028.10 -- Data Talk
DAX Ends 2.09% Lower at 15248.56 -- Data Talk
CAC 40 Index Ends 2.17% Lower at 6506.50 -- Data Talk
STOXX Europe 50 Index Ends 2.06% Lower at 3474.55 -- Data Talk
EURO STOXX 50 Index Ends 2.56% Lower at 4058.82 -- Data Talk
TikTok Partners With Square, IAS on Shopping and Ads
FTSE 100 Falls as Rising Energy Prices and Higher Bond Yields Prompt Global Selloff
S&P Global On Pace for Largest Percent Decrease Since December 2020 -- Data Talk
Philip Morris on Pace for Largest Percent Decrease in Nearly a Year -- Data Talk
Correction to Ferguson Trading Profit Headline
EU Urges Volkswagen to Compensate All Diesel Scandal Customers Across Bloc -- 2nd Update
Alphabet On Pace for Largest Percent Decrease Since March -- Data Talk
VC Daily: Corporate Venture Firms Have Board Presence, Report Says
BuilderBob Member Level  Thursday, 10/25/12 03:13:15 PM
Re: None
Post # of 128 
Posted by "Strukture" on The ICTY board.


$ICTY - Dilution, no dilution, does it even matter? Dilution scare tactics don't work.. or shouldn't, here is why I think it's important that we understand Dilution smile Dilution is uttered A LOT on the boards so before you get scared by these tactics, I encourage you to read on...

Dilution does not take place when MMs move stock selling at bid into or buying at ask out of the market. Those shares are part of the OS and free trading. They are not new to the OS, they are new to the days trading..

Flooding the opposite side of the bid/ask direction, does stall price movement in either direction. It is one of many tricks MMs use to control direction. But it is NOT dilution.

Dilution is when the company moves treasury shares from the Authorized Shares to the Outstanding Shares or tradable inventory, for cash investments in the company. This means there are more shares at the same market price and reduces the size of the EPS. It doesn't reduce the price or value of the stock. But so many penny stock traders actually believe that it does.

Dilution DOES NOT change price, it changes EPS. Creating loss in company value, not stock value.

SO that being said...Dilution does not occur when MMs trade opposite the trend price movement. That would be defined as manipulation, it has nothing to do with dilution.

Understanding Dilution and the OTC, Penny stock traders cannot compare it equally to the BIG BOARD stocks. SOOO few OTC companies even have an EPS to effect winkso dilution can't effect their company value in the first place HA HA big smile. Whats the value of no earnings,.. do the math you got it smile thus no EPS.

HOWEVER!!!!!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. SOO REALISTICALLY we should be happy about dilution, because WE ALL WANT THE COMPANY TO GROW!!.

That being said I generally hate hearing diltution is bad. In Penny stocks, 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, because THEY DO NOT HAVE AN EPS to effect.

So dilution is a win company, win educated OTC trader, The only negative is not knowing whether the company is diluting for the right reasons over the longer term WHICH NO ONE WILL EVER KNOW UNTIL IT IS TOO LATE!!

Dilution has to do with raising cash for growth this normally causes smaller Earning Per Share (which again wont effect 99.9% of OTC stocks) So it is only perceived (NOT actual) loss in company value. Because the cash recieved for the shares goes into the company books as cash assets, until used and shifted around in the accounting process. One never knows if the dilution is really bad or good, until management uses it and succeeds in company growth or not.[color=red][/color]

SOOOOOOO canwe move from the Dilution dribble now..

Thank you ,

Struk!! big smile

The safe way to double your money is to fold it over once and put it in your pocket. ~Frank Hubbard
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences