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agribusiness72

02/06/13 11:14 PM

#10449 RE: Jackroch #10447

Remember silver and gold can be bought and sold easily there is much liquidity in the market and the price difference between buying and selling is marginal. Diamonds on the other hand is a different thing altogether, most jewelery stores mark up the diamond cost over 100 percent, try buying a diamond from a retailer and take it to another and sell it. You will be offered half what you paid for it. With TEVE and any stock, you must have liquidity of which TEVE does not. If no one sells, no one buys, then the pps stays stagnant forever. So only way to add liquidity is to increase available shares so the market (buyers and sellers) will then determine the share price via PE ratios and the sort to put an accurate price on the stock. The problem you have now is in order for that to happen additional shares must become available, thus dilution. If your argument was valid, then the pps at such a low float never would have dropped over 90 percent from a high of 102 dollars to 7.60. But it did. But you already knew that.