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News Focus
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BogeyMan

04/15/08 10:34 PM

#65431 RE: Risicare #65429

Thanks for the lesson. Bottom line is no new shares have enetered the market. When people on message boards say dilution most people think the company is dumping shares into the market. So maybe most don't go by websters definition. Say hi to Elvis for me. GL!
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Leigh01

04/15/08 10:48 PM

#65438 RE: Risicare #65429

No whistles you are quite wrong. Sales revenues and profits and HUGE demand for their product matter too.
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Sentinel

04/15/08 10:50 PM

#65439 RE: Risicare #65429

whistles....Dilution can also be a good thing, IF the vast majority of the funds go toward building the business. It all depends on how management decides to spend the cash, if dilution is occurring, as you surmise. If the cash gotten goes toward securing recurring revenue, or infrastructure which grows the business significantly, I don't mind them selling some shares. I am not saying it is happening, and I am not saying it isn't. I am not nearly bright enough to discern it from the information we have now. I do know that growing a business takes cash though, and there are only so many ways a small company can do that
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doogdilinger

04/15/08 10:58 PM

#65443 RE: Risicare #65429

There's a huge difference in an increase of the outstanding count & a company dumping shares into the float...so until you acknowledge this most basic of valuation metrics & quit pretending that the increase in the O/S amounts to anything more than a hill of beans for those drawing up valuation models the sooner your claims of dilution will be put in the proper context lol.

The only thing the increased O/S affects is the valuation models for those who choose to use outstanding counts as oppossed to authorized counts when drawing up valuations.

The majority of the time in pos-land dilution means a company is dumping shares into the tradable float & in this situation it's simply not the case!