The increase in Authorized shares to 4 billion is
Post# of 75002
(Total Views: 684)
Posted On: 09/24/2017 9:03:20 AM
The increase in Authorized shares to 4 billion is not a bad thing. Point of fact its a good thing.
They are increasing the shares for the purpose of acquiring a profitable private company. The company in my opinion has a limited chance of getting larger because of the exposure and and capital to expand. By bring the private company into the fold of a public company they can exploit the profitability of that company and thus raise the stock price. As the stock price rises they will move to a higher trading platform. Once the stock price reaches a point where Funds are permitted to use their capital to acquire the company stock the price of the stock will continue to rise. The company that receives the stock will have restrictions on their ability to sell the shares. As the stock price rises and earnings increase funds will become available to buy back stock and thus lower the outstanding shares.
This is only my opinion and I wait and see just how this is going to play out.
They are increasing the shares for the purpose of acquiring a profitable private company. The company in my opinion has a limited chance of getting larger because of the exposure and and capital to expand. By bring the private company into the fold of a public company they can exploit the profitability of that company and thus raise the stock price. As the stock price rises they will move to a higher trading platform. Once the stock price reaches a point where Funds are permitted to use their capital to acquire the company stock the price of the stock will continue to rise. The company that receives the stock will have restrictions on their ability to sell the shares. As the stock price rises and earnings increase funds will become available to buy back stock and thus lower the outstanding shares.
This is only my opinion and I wait and see just how this is going to play out.
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