GREY:PGDIF - Post by User
Comment by
Kidlapikon Aug 23, 2014 2:54pm
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Post# 22872057
RE:the dilution
RE:the dilutionCudjo your math makes no sense.
The market prices PGD at $55mil right now. In October there could be 288 mil shares, yes, but there would also be $30-mil in the bank. Logic dictates that the market would respond to the cash in the bank different and thus value the company $30 mil more as well, ie $85-90 mil or at 288mil shares $0.31 per share.
At 0.21 per share at full dilution of 288 mil shares the market value of the company would be $60-Mil. Given that there would be $30+ mil in the bank at that time that would mean that the market assesses the value of all assets to be another $30mil when it currently assesses them to be $60-mil.
What justification do you use to theorize a drop below a market value of $60-million?