First China Pharmaceutical Group Inc (fka FCPG)

[VeryHolyGuy]

How Wang can create book value of common shares of FCPG.

Dilution to increase longterm value to common shareholders. Why? In order for the company to be able to acquire more assets or subsidiaries and inventory.

It's fast and easy.

Stock dilution is a general term that results from the issue of additional common shares by a company. This increase in the number of shares outstanding can result from a primary market offering, employees exercising stock options, or by conversion of convertible bonds, preferred shares or warrants into stock.

So it isn't so bad as some perceive as this may in the longterm increase value of FCPG.

I think Wong ought to go this route if he can't obtain more bank loans for fast cash. This will in turn create book value which the company does not have any and which is why the stock is suffering.

Book value is the accounting value of a firm. It has two main uses:

1. It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.

2. By being compared to the company's market value, the book value can indicate whether a stock is under or overpriced.

Good luck everyone