AmeriResource Technologies (ARET) Message Board

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Microcap & Penny Stocks : AmeriResource Technologies (ARET)

ARET 0.0001000

-66.7%

Nov 5 1:03 PM EST

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To: Lee N who wrote (7314)	7/23/1999 3:53:00 PM
From: MRTP	Read Replies (1) of 7609

First, they have to get a market for the shares. They are not going to have too many interested investors to purchase shares when their stock is at $0.04 and creeping lower. Second, maybe they are planning to use the shares to purchase another company or enter into a joint venture. I cannot see any benefit for a company to issue shares at this value, and further dilute the share capital. Third, if they issue new shares at current value, how does that "water down" the stock? If they get $0.04 per share, the money (less underwriter commission, if any) goes into the company. The value will not change. This is IMO. I am not saying that this best run company or that a new issue is the answer. But authorization of shares does not mean that float will increase overnight, and maybe it might be used to increase the value of current shares.

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