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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (75179)	2/24/2024 5:43:46 AM
From: petal	Read Replies (1) \| Respond to of 78781

Wouldn't it be still better for them to acquire undervalued stuff with that overvalued equity? Either to go on a controlled acquisition spree, or to do a merger. Seems to me that stock issuance at high valuations will be detrimental to existing shareholders, who, knowing that the stock is expensive, doesn't want to "buy more" at that level – but if they don't "defend their shares", they will be watered out. So they are thus caught between the rock and a hard place. Sure, the co. gets new money and is stronger, but its shares are worth less.