News Focus
News Focus
icon url

WillyburgD

10/27/09 12:03 PM

#41347 RE: GEO928 #41338

If QASP simply had to access the capital markets (and was selling newly issued shares) to complete the already announced transactions, then it might be fair to say that there has been devaluing dilution. If, on the other hand, QASP was able to conserve cash (e.g., substituting shares for consideration) or was able to pursue additional business growth not previously announced, then it is not fair to say that the dilution led to a decrease in value. But whatever the case, we'll know tomorrow. So sit back, relax and enjoy the ride.
icon url

RoboTrader

10/27/09 12:14 PM

#41351 RE: GEO928 #41338

30 cents? I'd be happy with that GEO. :)
icon url

GreyGoose_69

10/27/09 12:15 PM

#41352 RE: GEO928 #41338

Hell, I'll take .12 cents buddy! lol
icon url

Manti

10/27/09 12:41 PM

#41361 RE: GEO928 #41338

Sorry guys, but I'm sticking to my guns on this one. I'm NOT saying that there has been no dilution here. I am saying that we don't know for certain if there has or not.

Here's my reasoning:

Start out with 100 shares, and a company that is capable of generating x EBIDTA. If you double the OS to 200, and also double the EBIDTA to 2x, there is NO dilution, just a bigger pie.

To think that you should be entitled to 2x EBIDTA without a corresponding increase in shares when the company was NOT capable of it is like looking for a free lunch, or getting something for nothing.

That being said, I don't doubt that many were led to believe that this business venture would not use so many common shares as what it apparently is using, and IF they were deliberately misled they should be very upset, either with themselves or the snake oil vendor. In the meantime, this is the pinks, and all should understand the risks of playing here. If they don't, they'll soon learn or lose it all unless they're very lucky.