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Watts Watt

06/10/12 10:22 AM

#10147 RE: frankj #10130

Frank,

there are two ways to increase companies value:

1) allow your blow-up to happen and let the pps skyrocket first,
then authorize and issue shares later, diluting the stock and lowering the PPS,

2) issue and dilute first, let the blow-out happen and then let the pps skyrocket first.


Now, which way is better for the old time investor, 1) or 2)?


The answer is obvious.

In the first case, the old timer can get out at a very high profit.
Then after dilution can buy back in. See the leverage.

In the second case, old gets diluted and screwed because, as a holder, he probably does not have the resources to buy in at the lower prices.......He gets screwed ONCE MORE.

Somebody tell me I am wrong.