FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Andrew H who wrote (2747)	2/5/1998 3:44:00 PM
From: John Fairbanks	Read Replies (1) of 27968

People keep mumbling about the dilution from the line of credit if Ira decides to use it but I think we're missing something here... HELLO! It's not like we're planning to borrow this to pay for day to day expenses! Anything we borrow against it will be used to aquire a company and add to the earnings of the corporation... which should hopefully counteract dilution. It's just like personal debt. If you go out and buy a bunch of clothes and such on a credit card, that is called destructive debt. If you borrow against your credit cards to start a business which allows you to pay back the cards and have a business to boot (a friend did this very successfully) that is called constructive debt. Dilution, as long as it is constructive, can be a very good thing since it improves the liquidity of the stock and the attractiveness the institutions... as long as the earnings are increasing with share count.

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