Amarantus Bioscience Holdings Inc (AMBS)

[Riskreturn168]

Dilution is Disappointing, BUT...Lets remember this is a penny stock with a lot of wild expectations. There are people here who feel we can realistically reach a market cap of 3 Billion or more one day. So, back when we had only 500 million outstanding shares, a cost basis of .06 cents could turn into $6 some day if we reach a 3 Billion market cap, AND IF we don't have any dilution. That is a 100 to 1 return! Pretty spectacular. But, what if the company had to dilute by 100%, going from 500 million shares up to 1 Billion outstanding shares. That would mean the same investor would only go from .06 cents to $3, a 50 to 1 investment. Still not bad. But, as a way of making some of that dilution back consider this: when we go to the NASDAQ and our shares can be MARGINED, much of what we have lost in dilution can be made up by using margin money to buy more shares. So, depending on how much you're willing to margin, you'll be somewhere between a 50 to 1 and a 100 to 1 return. So, we have to keep things in perspective. We're in with LymPro and MANF at the ground floor. AMBS will never be able to get to $3 Billion or higher in market cap unless it has the necessary financing runway through dilution to get there. It goes with the territory! But if you're willing to do some of your own "margin financing," and you believe this stock is really going to soar, you can offset the effects of the dilution that has and will be done.