Anybody out there concerned over dilution from the announced stock issue of 3.6M shs?
Well, yeah - that's part of the reason the stock price has gone down. In order to keep the market cap about the same, the share price has to drop accordingly when new shares are issued. It also affects the EPS in a bad way. The only good news is that it should already be incorporated in the share price by now.
I'm not following the reasoning on this. If HAKI is issuing new shares, then I understand that there are more shares out there to dilute the value. But when they sell those shares (at today's nice price compared to last year), then HAKI's assets (CASH IN HAND!) goes up. Then it is up to the collective investors to decide whether HAKI's management can use the new funds to generate more revenue from the new cash. My theory is that the dulution from the additional shares should be offset by increased revenue so that there is little effect on the EPS. If they have a good business plan for the increased equity, then EPS should go UP over the long haul. If not, then I will sell tomorrow.I am relatively new at this, so please tell me if my theory is flawed...I'm holding on to HAKI and others in the same situation assuming that they will bounce back when the market realizes that the dilution from the additional shares did not really effect the ROI.LTBH on HAKI et al...luck and health to all.jec
A book says that new shares being offered can mean two things: 1) a strong company will use the money effectively, or 2) a weak company will use it ineffectively. Haki mgmt is strong, i believe. I'm concerned about the timing of the sales. Has it happened? Do they do a little at a time? Shouldn't the volume show on the charts? I don't think we've seen 3.6m change hands since the 3/7 announcement, but maybe someone can tell me more?Also, this firm used to be proud of cranking out out their financials in twenty days. I wonder why the 12/31 numbers aren't out yet.
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