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Technology Stocks : ACII - AmeriChip International, Inc
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To: Ted M who wrote (962)1/23/2008 4:12:47 PM
From: boundtb   of 2396
 
TedM: Dilution can be good and bad. Sorry. That said some forms of dilution are better than others. Take your pick:

-Dilution as pay down for debt > less interest expense > less debt > positive effect EPS > positive effect PPS > positive effect toward future debt pay down.

-Dilution as pay consultant/employee > consultant/employee is paid > hope you got good advice/job > Dilution period > Rossmann.

-Dilution buy a company > risk of ROI > great if ROI contributes to EPS > KSI.

It may be that a reduction in interest expense may be more significant to a small company such as ACII than others. I do agree with you that the debt schedule does not appear to be that high.

I guess I'm just saying that if given a difficult position and dilution is engaged than debt pay off is my choice for the devil I know than the devil I don't.

Something like that, hope this was helpful, appreciated your interest.
boundtb
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