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sageofflorida

05/28/11 11:22 AM

#92910 RE: moorewdaniel #92909

I don't have the strong adversion that some posters have regarding a company diluting. I am talking in general here.

Providing the new issued stock ENHANCES earnings per share that in my book is fine. Providing the dilutions are not extreme in size and the use of proceeds are directed towards a highly speculative project. It goes without saying that dilution to "survive" ie pay salaries and the light bill etc is NOT good at all.

Restricted stock ( preferably for 2 years) or even a different class of security are viable alternatives. The security can be specific in a particular project and not in the holding company generally.

Companies grow by debt or equity- theren't any other alternatives. The tooth fairy isn't a route sadly.

Just a thought/////

SAge.

discreet_suffolk

05/28/11 12:24 PM

#92915 RE: moorewdaniel #92909

Dan, This is why I always use Authorized shares for my calculation of what a company is worth ;)

The Outstanding Shares might increase or decrease but my calculations are always the same. Unless there is a secondary offering