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capitalismforever

11/04/12 7:39 PM

#6724 RE: Abig #6723

"Please show me where on the financial statement does it state that this specific 12k order was shipped."

There's no reason to as it's common accounting knowledge that revenue can not be booked until product has been shipped. It's the law under GAAP accounting rules.

"I will look at it from your point of view OK lets say company XYZ added 6 mil shares to their existing share count of 600 mil and company ABC added 6 mil shares to their existing share count of 6 mil. In that moment of time my value in company XYZ just got diluted by 1% but the dilution of company ABC just got diluted by 50%. So to you both of the situations are the same?"

No, both situations aren't the same and it seems we are talking about two completely different points. My point specifically is that the company added 6+ million in shares. If the cost basis of those shares were $0.30 per share, as an example, then the transaction would be approximately $1.8 million. Yet, only $114,761 of cash is available in cash on the books. So, in order to obtain $114,761, the book value of the company, in this scenerio, is diluted by $1.8 million. Doesn't sound like a good deal to me.