GREY:CCZFF - Post by User
Post by
Kantenahon Jun 28, 2010 11:11am
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Post# 17227198
No dilution?????
No dilution?????
Davewho said: "No dilution from such a small PP anyway".
Here are the facts: a $2.4M PP represents approx. 9.5% on the total market cap (about $25M) of the company. In other words, some institutional money has just swooped-in and swallowed up 9.5% of the company. Therefore, the shares you hold today are worth 9.5% less than they were on Friday. Unless CCZ can grow the company to compensate for the new PP, there is dilution and lots of it. Its that simple.
My guess is that they need the money to handle their debt load and this is an easy way to convert debt to equity. Of course, current shareholders are the ones left holding the bag.
SP will be in the low 50's (or worse) soon.
All IMHO
-K