Replies to post #15082 on InterCloud Systems Inc. (ICLD)

[retiredtech]

Wrong on so many levels. Dilution does not change PPS? OK! This is a joke, right?

[KIPK]

One of the best posts here

[bogblog]

In response to your post, dilution increases the ratio of supply of shares vs demand for shares. Therefore it clearly does affect price. I will agree with you that dilution can be a good thing, if it is handled responsibly in order to reach growth targets. It can also be a bad thing when it's just profiteering. Forgive me but I think your post is overly simplistic. It is a nuanced subject and you can't just go issuing blanket statements like that.

Given Friday's strong performance, I doubt there's any dilution. ICLD had well over $5M volume on Friday, so any last converters could have easily cashed out then. Correct me if I am wrong, but the only convertible I'm aware of that they have is the note that they have two years to repay (from Friday's 8-K).

But that's just IMO, I'm not an adviser. Do your own DD and charting.

[shotsky]

Partly right, partly wrong. No creditor would take on convertible loans without an enticement. The enticement is that they can convert debt to equity (shares) at BELOW market price. There would be no value in market price or higher - they could just buy stock instead of investing in the company. They are enticed into loaning money because they get shares at a LOWER price than the rest of us, but when they do it, the price sags, because that becomes the new stock price. As long as it continues, the stock price plummets. In this case, all the way to $.01. Now it's gone, and can't be driven lower by dilution.
Only lack of execution can now hurt ICLD, and I don't think we will see that. They want to profit from their company too.