Replies to post #15126 on InterCloud Systems Inc. (ICLD)

[Navin R. Johnson]

First of all I did not make a "blanket statement". I simply gave a reason why the ICLD dilution was not worthy of disdain by a basher by using the rational for raising capital offered by Trader53. And if dilution "clearly does affect price" then why is ICLD PPS up ~450% in the face of considerable dilution?

Yes, many penny stock companies dilute shareholders to death but such is not the case with InterCloud. Perhaps you should read posts more thoroughly before you make judgments.

[shotsky]

No, dilution is when thousands to millions of shares are released to a debt holder at less than the current share price. The rest of us are then unwilling to pay more than the diluted price, so the price simply drops to the diluter's price.
Go read some of the debt SEC filings to see the number of shares and the (lower) price provided by the contract. If there are several debt holders that all have convertible debt, and they see others jumping into the conversions, they will do the same, else they miss their best price.
It is a snowball, which, for ICLD, has reached the bottom of the hill.