Few public companies issue stock on a constant basis (daily, weekly, monthly). Most do an IPO and perhaps a secondary or even tertiary offering down the line when they need funds to expand.
And of course, only a non-exchange traded company can gag their T/A and hide the true extent of the dilution from the public.
The DKAM version of dilution is bad IMHO for several reasons:
- It's done so frequently that the additional shares in the market creates more selling pressure, driving down the price.
- The company creates shares at no cost, so whatever they sell them for is found money. While they certainly want to get the highest price possible, they can always undercut another shareholder wishing to sell. More downward price pressure.
- Gagging the T/A is usually interpreted by investors as a signal that the company is going to be substantially diluting in the future, as of course does past history.
I completely agree that DKAM is not a fraudulent company "cooking the books". As a side note, those companies often perform better as investments until the fraud is discovered. However NOT being a fraud does NOT necessarily make for a good investment.
Best of luck.
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