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Toofuzzy

10/15/11 9:19 AM

#13 RE: exlud #12

Hi Exlud

I always hate it when a company issues more stock when it is near its low (down the tubes) than when it is near its high.

In 2006 they could have sold shares at $15 and the high for the past year was over $5. Now it is under $2. When would YOU think it is rational to sell additional shares?

I am NOT saying the company is on its last legs.

In other cases a company has a very high dividend yield and issues more shares when they should be able to borrow money at a rate below the dividend yield.

Toofuzzy