RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Master plan news coming I feel it BudFoxx2020 wrote: The only time dilution is good is when stocks are making new highs. This is how WELL went from $1 to $9+. When a stock is hot there is huge demands for the stock, everyone wants to get their hands on it. Then dilution is good. When stocks starts making new lows, you really believe dilution is good.
whether a stock is "hot" or not has nothing to do with dilution being good or bad. issuing new shares in conjunction with an acquisition can be accretive to shareholders regardless of what the price is. it depends what they pay for the asset, how it's financed, how much recurring Net Income/EBITDA will be generated.
something you've completely ignored here is that WELL has raised capital at a premium to market several times now, indicating demand exists to purchase the shares above the current market price. so the depressed share price is a bit of a moot point if they can strike a deal, use some cash and senior debt, and then raise some capital with a share offering at a premium to market.