No. of Recommendations: 1
Hey folks! Been awhile since I've been around though I do see you guys regularly getting the Post of the Day. I have a question about a company I own and I thought for sure this would be the place to get the question answered.

The company wants to increase the number of authorized shares from 30 million to 60 million and has filed a Form Pre 14A. Someone characterized this as a 2-1 stock split, but I'm not so sure.

In the proxy itself, it discusses how the company has already had a 3-2 stock split as well as a 2-1 split, but has never increased the authorized number of shares. It wants to use the new shares for:

"future business purposes, including, without limitation, issuances in connection with future financings or acquisitions, equity compensation plans (provided that appropriate stockholder approval has been obtained), contractual commitments, and stock splits."

Having never read one of these forms, what exactly is the company trying to do here (aside from increasing the number of shares available, obviously)? Is this good or bad? Thanks for any light you can shed.


P.S. I'm glad so many of you have made your way over to Philip's Inside Value newsletter. He's doing some first class work there.
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