Bear,
For the sake of argument, let's say that all the fish farm, cattle farm, and WSPS construction income is automatically dedicated to reinvestment in new capital development and increased equity stakes. Therefore, all that business is cash flow neutral, maybe negative.
That has been a huge percentage of income until now.
The questions for me are:
1) In 2013, what percentage of sales will generate non-dedicated cash profits?
For instance in Q3 FF1 sold $6.25M fish; at 40% margin that's $2.5M cash profit. It will be $3.0M in Q4 and probably $12M in 2013. Likewise, the product sales from fertilizer, beef, restaurants, HU plantation, and WSPS1 and 2, plus import export all will generate cash profits, right?
2) Is it not at the election of the company to reinvest these cash profits into the company's asset growth, at least on the margin?
3) So whereas I agree with fast growth, and reinvestment of up to 100% of free discretionary cash flow (and loans) at infancy through toddler stage, can there not, should there not in 2013 be some leeway in the business plan to issue new shares only when market conditions are favorable?
Whereas Ecuador, the country does in fact deficit spend, to Ecuador, the poster's point, the return on marginal CapEx spend for shares issued at $.50 will not be returned in eps, tho perhaps there are strategic reasons.
Of course, Ecuador, the country, intends to be around for millennia. Solomon has said he's building a company for the next 100 years. Unfortunately, he doesn't have any shareholders who will attest to his success.
