"exactly, this has been in the works for over two
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Posted On: 08/01/2019 10:04:05 AM
"exactly, this has been in the works for over two years, and as this technology gets ready to go through the selling process there needs to be some reserve shares in the till.
It is very doubtful that they will use the entire share count however it is there in reserve. I am guessing they will do a share buy back once this technology is sold and before they announce any new technology they may have in the weeds.. "
I agree-once these companies have the money to start exercising their game plan-at that point the stock becomes undervalued- a lag between(rising) pps and true value-and so at that time many companies do a buyback during that lag rather than having to pay more to buy back later-I've noticed that many companies in the 1-2 dollar range etc seem to target a 150M -250M OS in such a transition
and yes, bashers almost always use a rise in the A/S as a scare tactic-wrongfully implying that companies will dilute to the max A/S
the word dilute as loosely used by bashers is suspect anyway-what difference does it make if a company pays debt or employees or directors (this last part as almost all blue chips partially do in lieu of cash salary) via shares rather than cash - if the shares thus issued are priced at a value greater than actual market value there is no dilution. If shares are assigned a value higher than actual market value in such transactions a company actually is strengthened vs having to otherwise pay out a larger amount in cash resources-and most companies try to conserve cash
most of the rest- the legal- i did not know- but interesting
justice will be done someday
It is very doubtful that they will use the entire share count however it is there in reserve. I am guessing they will do a share buy back once this technology is sold and before they announce any new technology they may have in the weeds.. "
I agree-once these companies have the money to start exercising their game plan-at that point the stock becomes undervalued- a lag between(rising) pps and true value-and so at that time many companies do a buyback during that lag rather than having to pay more to buy back later-I've noticed that many companies in the 1-2 dollar range etc seem to target a 150M -250M OS in such a transition
and yes, bashers almost always use a rise in the A/S as a scare tactic-wrongfully implying that companies will dilute to the max A/S
the word dilute as loosely used by bashers is suspect anyway-what difference does it make if a company pays debt or employees or directors (this last part as almost all blue chips partially do in lieu of cash salary) via shares rather than cash - if the shares thus issued are priced at a value greater than actual market value there is no dilution. If shares are assigned a value higher than actual market value in such transactions a company actually is strengthened vs having to otherwise pay out a larger amount in cash resources-and most companies try to conserve cash
most of the rest- the legal- i did not know- but interesting
justice will be done someday
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