Friday, November 25, 2005 4:10:23 AM
I disagree, dilution has been a necessary means for many of the strong companies of today, But it has also been abused many times. I agree that the dilution should be watched carefully but I do not believe it is a disease as many claim. For good companies with a strong business plan and careful use of this dilution it can be a benefit. I believe this is the case here. They have it available but with the better than expected numbers we are getting today it is becoming less and less likely that they will need to use it. Profitability for this company is on the horizon IMO and they have very little debt. The CC deal cost them nothing up front, just a revenue share agreement which is like free advertising IMO.
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