There are lots and lots of reasons that this company is real and honest; including the dividend, Form-10 enquiry after chicom meltdown, new FN dd; Jordan Fund dd; the facilities are real, as investors are invited, etc., etc.
I don't like the dilution either. I'm trying to understand it better. But I do get this, and you should too. The overall capital development is very, very large for a company this size, and it is very, very, very accretive. It generates absolutely fantastic returns in income now, and cash in 2014.
More importantly, especially for our opinions on the dilution issue, Solomon is doing exactly what he said he'd do. This is no deception or even surprise, whatsoever. He announced long ago that there would be share issuance through 201. And 2013 is the last year. So, he's executing a well publicized plan. That's pretty forthright; the opposite of fraud.
And as an investor, you knew his plan, or should have.
Now, the dilution is costing more in eps than one could have anticipated. Therefore, in my opinion, it should be curtailed or lessened, if possible. I am not entirely sure that commitments have been made in accordance with the 4 year plan that cannot be reversed at this point. (I argue and think they can and should, but I'm not sure)
But we know that Solomon is seeking new means to raise capital, other than equity issuance. And he is seeking means to issue fewer shares if that's the only way, and in a more shareholder friendly manner.
So, in essence, he has seen and listened.
