I also disagree that just having the shares authorized doesn't hurt us as long as they are not being traded. Whoever has those shares now has a percentage of the earnings that Eutro might collect, and the fact that they now have a percentage has decreased the percentage of MY holdings by 1/5 if all are used in purchases, employee stock benefits, etc.
I do believe you're confusing Authorized with Issued. The price is influenced more by the free trading float which today is 108 mil - number shares held.
You are right about one thing: if all 500 mil shares are issued you will be at 1/5 your current holdings. That will probably take a year or so and we will have plenty of time to see what Eutro uses the stock for.
Finally, why didn't Eutro just use the 50 mill shares that they were getting back from the other companies instead of authorizing more?
Because it took to long and IVY was not the only asset they wanted to acquire? If 'the four' are not using this opportunity to buy back the leaked stock, it will probably take until early summer before that is fully sorted.
They could have given companies an equal percentage of shares without increasing the overall amount.
Luckily the acquirement targets knows how the stock math works. I am sure they 'charge' a slight premium to guard against a potential depreciation but not anywhere near five times.
This has been the biggest disappointment of my investing experience, limited as it may be.
As I still believe Eutro to be working in the best interest if the company, your disappointment works in my favour. A lot of stock has been sold back into the free trading float, driving the price down. Now, or the near future is, IMO, the right time to take positions if one believes there will be good news in January.
So place your bets or stay the h*ll away from the table. [This message is not neccessarily directed at you, Douglas.] |
