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Microcap & Penny Stocks : EBLD - Entertainment Blvd

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To: Pennyslayer who wrote (2111)4/30/1999 1:32:00 PM
From: gizmo&jack  Read Replies (3) of 3838
 
Pennyslayer, with all due respect, all companies do not grow through profits alone. That is why there is a public market in the first place. Companies, particularly early stage companies, have many expenses and need to promote themselves (which EBLD will do with the proceeds) before they can profit. AMZN has done this several times already as an example without much damage to its stock. It has instead built the premier brand name on the net and has expanded way beyond its original books only business. This move by EBLD is necessary and intelligent. In addition, the warrants are not free. They will cost $7.50 which means that they will expire worthless if the stock does not reach beyond that point. The fundamental question here is this: will the dilutive effect of this deal be compensated by the earnings per share increase that the funds will help create? IMO, with the overriding importance of brand name on the internet (AMZN, EBAY, YHOO, etc.) and what that can do for traffic and ultimately revenues, I think the answer is emphatically YES!!!
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