SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mishedlo who wrote (83667)8/22/2008 7:52:44 PM
From: Sr K  Read Replies (2) of 116555
 
Many analyses of dilution are doing it wrong.

For RF, for instance, Bennet Sedacca wrote:

>> And the stock is now a 'single digit midget' near $8 a share. So, as I see it, if you could get a deal done, shareholders could get a 50% haircut.<<

With about 700 million shrs outstanding, if they sold 300 million shares at $7.50, netting $7.00 or $2.1B, the current holders would have 70% and the dilution would be 30% ... not 50%.

Then there is a possible short squeeze. For September, there was OI before today of 10,818 7.5 puts and only 756 7.5 calls.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News