Replies to post #54212 on FuelCell Energy Inc (FCEL)

[igotthemojo]

"In a well run company additional shares are approved in advance of antticipated spike in price"

in a well run company, PROFITS are used to create a spike in price and are also used in lieu of dilution...

in a shitty company, additional shares are ALWAYS needed for dilution purposes because they dont know how to generate money any other way...

with fcel, if Few needs to get paid, the solution is to sell more shares...employees gotta get paid?...sell more shares...out of coffee?...sell more shares....

oops!...no more shares left to sell?....lets hold a SH meet and ask for 500 mil more shares...lets pretend we wont sell right away because we dont need it and expect a huge rise in the pps...when it gets approved, we'll dump a shit ton of shares...

[hopester]

Quote " In a well run company, add'l shares are approved in advance of a spike in price"

Operative words are " a well run company" . A well run company doesn't show losses for 40 consecutive quarters.

That's not how it works. Prior to the announcement of add'l shares to be voted on , a company usually releases a piece of favorable news to prop the sh/px. That gets the votes . Then as the news becomes discounted the share px drops back to near its prior price before the announcement.
I sincerely doubt whether any piece of favorable news can overcome the sigma of a 500,000,000 share slow but ongoing dilution.
Shareholders don't like their value being cut in half.
But Longs will whacked again when the R/S comes. Probably shortly thereafter the Shareholder meeting.