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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: srvhap who wrote (69186)	10/17/1999 2:25:00 PM
From: Greg Jung	Respond to of 132070

Interesting question, fwiw (not much) my take on things: Companies get extra shares authorized via shareholder vote. If the shares of a company are about to double or triple, its either a stock split (benign) or merger/takeover or etc. Shares authorized are not shares outstanding, they have to be granted by some legal means. You will get dilution if you company is in "research" mode (always loses money) and it needs to constantly offer secondaries to fund operations. If the issue is bouyant (ie Ancor communications, lately) then a small offering can go a long way. Otherwise secondaries are not feasible and then they make the deal with the devil. He resides in the Cayman Islands. If you see this "country" on SEC documents for your stock, put it on the "let go asap" list. See thread on SI under "Floorless" search. As example of floorless at work, watch (dont buy!) price of NAVR in the coming months. Greg