Re: ALYD Shares Issued and Outstanding
I feel like I'm caught in the middle of an Abbott and Costello routine (gg).
Ed Greenberg (and others),
All information pertaining to the issuance of common stock for publicly traded companies is public knowledge. Companies on the major exchanges (i.e. NYSE, AMEX and NASDAQ) are required to file this information with the SEC. Others, like ALYD, that are on the BBs, voluntarily do so as well. Therefore, the answer to this question is not rooted in opinion, but fact.
Let's look at what ALYD has filed in their most recent SEC document, shall we?
Common stock, $0.001 par value, 20,000,000 shares authorized;
13,983,282 and 11,187,373 shares issued and outstanding
For those that still don't believe me, here's the link:
sec.gov
It certainly is important that companies have shares in the treasury they can sell to raise additional capital (although there are other alternatives I'll touch upon later). If you look at the number of shares issued and outstanding for ALYD over the past several years you will see they have done just that.
Yes, I have more up-to-date figures than the S-10. Quoting from ALYD's (unaudited) balance sheet included in their most recent IR packet, there are now 15,113,280 and 11,772,890 shares issued and outstanding.
This is a far cry from full dilution as Matt has stated, is it not?
Ed and others, ask yourself this question: has Matt ever quoted a single source for his information??? The answer is a resounding no.
Anyone who thinks I am anti-free speech obviously hasn't read my comments on the Pluvia vs. Westergaard thread here on SI. The difference between Pluvia and Matt is that Pluvia names people to whom he's talked and he quotes press releases and SEC documents. Matt, as you now can see, has just cut and pasted his own opinion for the last week.
Ok, now on to part 2 of my lecture. (Since I tend to fall asleep at lectures I don't blame anyone who caught a few ZZZs before getting to this paragraph (gg))
There are many alternatives open to a company to raise money. If they have a benevolent CEO, he/she can sell some of their own shares and simply give the proceeds to the company. Bob Gruder did exactly that last year. Companies can also simply issue more shares, have a secondary offering or, if things are doing well, initiate a 2 for 1 split. Obviously, if you've been following along up to now, you know that ALYD need not do any of the above. Worse case scenario, if they did need cash, they still have 4.9M * $23/share (current stock price) = $112M in shares left to sell!!!
Of course if the company is indeed operating at a monthly profit, like they have said they expect to be by now, then this entire discussion is a moot point!
Ed, everyone on SI has the right to post every random thought that goes through their minds, on every single thread redundantly, should they so desire. But I think you would agree that everyone else has the right to tell that person how they feel about those posts, no?
Matt Hale's posts, are, I repeat, recalcitrant platitudes. With the issue of ALYD shares outstanding he simply built a straw horse and then knocked it down. He suckered innocent people like you buy getting you to agree with his, at face-value, reasonable conclusion-- thereby diverting your attention from the fact that he simply made up the first part.
I've gotten tons of e-mail telling me to ignore the guy, but when good people like you start getting concerned, that's where I draw the line.
This Wednesday night I'll be attending a party thrown for ALYD, by a major fund, on the eve of Thursday's Cruttenden Roth conference. I suspect Matt will be home in front of his computer asking "Who's on first?"
- Jeff
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