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Gold/Mining/Energy : Rondal Gold Corp -RGD (formerly Prior Resources - PQL)

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To: Carol who wrote (15)9/25/1996 6:33:00 PM
From: Robert Saito   of 331
 
Carol:

Among the many factors involved with determining your plays, the number of shares outstanding and the fully diluted number of shares, can directly effect your return on investment capital. In a simplified explanation, if there is a 100 million dollar profit to be disbursed, which is the better situation, 10 million shares or 50 million shares? What also must be considered is the available capital in treasury. If a company is constantly issuing new stock to raise working capital it further dilutes shareholders value. Or if there is 5 million dollars of working capital, the market cap is fine. 30 million shares outstanding for Prior is somewhat worrisome, but I bought in today anyway. Sometimes the prospects compensate such concerns.

Good luck in your trades,

Robert Saito
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