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05/28/11 11:49 AM

#92913 RE: moorewdaniel #92911

On dilution!!

To me there are TWO different kind, One is good and one is bad!!

When you are diluting just to keep the doors open.. GULP.. I don't like it...!!

HOWEVER!! when you are diluting for the aquistion of a VALUABLE entitiy well then it could be a good thing..

For simplicity

Say the company was worth $1,000,000 and had 1,000,000 shares then it bought company X with 1,000,000 new shares UGH... right?? well if the new value to the company as a result(not the day or week of but say 1-2 years down the road) Went to 3 times what is was instead of say staying flat with it's current holdings... you would ONLY OWN 1/2 of the percentage you had before the dilution, but your stock would be worth 50% more because of the great value..of what we bought COMPANIES do this all the time... IT is a good thing... hey, even if in a year it adds 10% extra to the price of YOUR shares, who cares what % of the company that is..!!

sageofflorida

05/28/11 12:04 PM

#92914 RE: moorewdaniel #92911

In simple terms moore it is better to own 1% of MSFT ( after havng been diluted from 100%) than 100% of your local corner store that repairs PC's

Sage.

discreet_suffolk

05/28/11 12:27 PM

#92916 RE: moorewdaniel #92911

You can always call the T/A (Number in Ibox) ANYTIME and get the latest O/S.