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As I See It

01/28/14 6:57 PM

#6029 RE: Chompiee #6028

My crystal ball is not that good. What I am saying is that at least one significant headwind will recede. Will other new negatives emerge? Are we already at fair value based on what is presently known? Undervalued? Overvalued? That is anybody's guess. I have my opinion others have theirs.

Make no mistake about it, the effects of dilution are real and substantial. I think that it helps all of us to become more comfortable with the stocks we own if we better understand some of the forces that act on them. I am not offering trading advice.

Dilution quite simply means that any future profits must be spread over more shares. By definition that means each share's future claim on profits will be less than it otherwise would have been. It's long term value is therefore diminished.

If STWA technology is successfully deployed in sufficient quantities with decent profit margins the obvious answer is yes the share price will go up. In the meantime it is wise to learn as much as possible and constantly reassess.