Ted Warren's Investolator Message Board

STOCKTALK

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 : Ted Warren's Investolator

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Balti who wrote (1302)	5/17/2023 6:01:09 PM
From: WEagle	of 1795

Balti,, On the question of dilution, I haven't paid attention to that. My opinion is, if it is due to a stock split, nothing has really changed. Say you have 100 shares that are worth $10 per share. If the company has a 2 for 1 split, you will then have 200 shares worth $5 per share. On the stock chart, all that happens is the price scale changes but the chart will otherwise look identical and the formation will look the same. If the stock price is not backward adjusted then there will be a discontinuity on the day of the split where the stock value drops to 5, but that shouldn't be the way you look at it. However, what I see as dilution would be if the company has another offering of new stock to raise capital. This adds additional stock to the outstanding shares (the float) and while it can be argued that the capital raised adds value to the company, my feeling is that this will not be good for the price of the stock unless that cash is spent to make significant improvement in the company/product. This is actually a good question for Bob. WEagle

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next