RE: RE: RE: Major REE Stocks Starting To Fly!A lot of retail investors get a bit confused on the idea of dilution.
The key thing to remember is that there are two sides to a balance sheet. To look at only one side is myopic at best.
Value is derived from the assets divided by the liabilities of that wealth represented by the total shares outstanding.
Yes, tighter share structures can be better than companies with massive amounts of stock issued but this really depends on the assets.
Sometimes a company with a massive shareholder massive can have explosive growth.
Take Apple as an example. It has over 800 M shares outstanding. You could have bought this for around $3.50 (split adjusted) in Dec of 2010. Now nearly 10 years later, it's been trading circa $250. That's an over 7,000% increase!
For an natural resource play, value is achieved through the discovery and subsequent delineation of a commercial ore body.
So Nickpaul is on the right track in thinking about the downstream value which is where the real markup comes in the REE value chain. How much Lynas' assets will increase in an REE starved world is your question vis a vis its shareholder base.