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URL:  http://boards.fool.com/im-invested-in-an-rd-company-they-have-no-income-18395829.aspx

Subject:  Re: Outstang share count Date:  1/8/2003  6:09 AM
Author:  DanielDauenhauer Number:  6056 of 35363

Im invested in an R&D company they have no income but VC funding and a burn rate of about $300,000 a month. ... The Outstanding share count was at 24 mill back in 2000 and the share price was at $15. Today the Out Standing share count is at 50 mill and the share price is at $. 51.

I don't really understand your question, but if you're asking why the big price drop and no sustainable uptrend, I think that you have your answer right there. With that kind of dilution, Intrinsic Value would have to double every two years just for Shareholder Value to remain constant! The possibility of any company doing that is incredibly remote. Furthermore, the lack of income means that the company is capital-destroying (negative Intrinsic Value), unless it has obvious, known profit prospects. So, the stock has been discounted by the market as essentially worthless, occaisonally getting bid up by random speculators, nothing more; the kind of company that really belongs in private VC financing, not the public markets.

DD
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