Replies to post #59381 on KMA Global Solutions International (KMAG)

[mc6102]

Well in that case, we've been discussing that here for quite a while. There was a conversion of a conv. dibenture last summer (at .0006 I believe), and many of us believe they have not bled all of them in. They weren't all necessarily dumped into the float last few rounds of upward movement since their conversion.

Many, or few could have been absorbed with the volume, or they could have just been manipulating it the whole time.

Clearly there is a big shareholder that puts shares out to be sold at will, however, they seem to have enjoyed pulling their orders at key supports and letting it move up again.

Company has net cash from first quarter alone, so increasing the O/S is an unlikely scenario. It's not dilution, imo. The amount of "active" shares trading in the float, however, is a different argument

[Monarchs96]

Here is the defintion of dilution (and I know you know this)

Stock dilution is a general term that results from the issue of additional common shares by a company. This increase in the number of shares outstanding can result from a primary market offering (including an initial public offering), employees exercising stock options, or by conversion of convertible bonds, preferred shares or warrants into stock. This dilution can shift fundamental positions of the stock such as ownership percentage, voting control, earnings per share, or the value of individual shares. A broader definition specifies dilution as any event that reduces an investor's stock price below the initial purchase price.


So when you start talking about dilution, people think you are taling about an increase in the share structure as that is what stock dilution fundamentally is. You really mean to say "an increase in the number of shares being freely trading." That could very well be.

[tushiecomplete]

So if there is 611% increase in revenue, with 5 times that amount coming next quarter, does that offset any part of dilution that may of happened last year?

Or is any dilution in the past still bad, but growth of the company doesn't really mean anything, because the only thing that matters is the past dilution? btw, the share structure here is currently shrinking, starting with the A/S, followed by the O/S.

What's the antithesis of dilution?

[J Robert]

Dilution is when the authorized shares are increased for any reason. A/S have been decreased. However, the effect of paying debt with already authorized shares is no different than if those 6 entities bought those shares. They are just very, very large shareholders that "may" be selling. If the selling isn't coming from those shares, or shareholders who bought back in the early days and are now selling; I don't think any of us know where they're coming from.