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Microcap & Penny Stocks : TNRG Tianrong Building Materials -- Ignore unavailable to you. Want to Upgrade?

To: Seeker who wrote (3097)	8/8/1998 3:01:00 PM
From: ISOMAN	Read Replies (1) \| Respond to of 9824

I think TAKI was trying to insinuate that Tilton was selling some shares in the open market. I guess he thought that that was sinister. Even though it happens quite regularily with small companies. When faced with overhead, Tilton has three decisions to make. Does he take money out of the cash flow to pay. Does he issue new shares to pay for the expenses, or does he sell some of the currently issued shares that the company owns or he himself owns, to pay for the overhead. Now, obviously the most desirable is for the overhead to be paid with cash. However, if you are taking a company from a depressed financial state as it was 1 year ago, to turn around, like it is now, then you want every last dollar that comes in to go toward, making the company more profitable in the long term. Do you issue more shares to pay for expenses? You can, but Tilton wants to issue new shares only to buy new businesses for they company. Acquisitions that will generate long term income for TNRG. Selling some of the company owned stock allows tilton to keep up the overhead. The only harm it does is to Tilton himself, as he has to sell his shares at the current low prices. That takes money out of his pockets long term, not ours. Maybe Taki would rather he issued some warrants to raise money.