OTCPK:RDIAF - Post by User
Post by
CQuicon Dec 02, 2009 2:59pm
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Post# 16546586
Lack of reaction
Lack of reactionIMO the market's lack of reaction to the coming dilution is probably due to the fact that (other than a couple of up days) this stock has stayed between .045 and .07 for the better part of this year. The offered pp is not a drastic change from the average going price of this stock. There have certainly been worse dilutions seen in other stocks this past year. The writing was on the wall for dilution and I think a lot of investors are waiting to get in after RDI is fully diluted. That will reduce risk. What I see as a positive for current shareholders is that the company did not wait for the price to go up before the offering. For those that have been holding for a long time and got in at a higher cost, little has changed for them since 2008. But with the pp out of the way RDI can begin on a growth path again rather than mere survival and repair. With a strong balance sheet will come eventual sp increase. I'm personally very happy that the company did not take the old "roller-coaster" route by presenting positive results at the end of February....allowing the sp to jump up....and then hitting new shareholders with a dilution. That's always ugly IMHO, but I've seen it happen a lot this year. I think that increases in sp will begin to happen around February and I hope to see the sp rise slow and steady.
GLTA,
CQuic