Replies to post #673 on Biostar Pharmaceuticals, Inc. (BSPM)

[NightsWatch]

There's a reason GAAP requires a non-cash charge for increase in value of warrants for these small cap stocks.... it's dilutive to the shareholders. If the warrants go up.. that means there will be more shares down the line.

I've seen this before... it should be excluded because it's a non-cash charge and it is not an operational charge. You are deluded in thinking the market will think that way. They look at diluted eps... and if there's a disappointment, the stock will get hit. I wish I could say that the market will factor out the non-cash expense charge for these warrants.. but time and time again the market DOES take these charges into account.