RE: Dilution- Since I asked the questionThe discussion on dilution has been interesting, but a waste of time. After all, what is the new news? Nothing! We all knew the number of shares out there and that they did a private placement a couple of months ago.
Compare this to FCC- yes you could, but at this point comparing apples with potatoes= not even in the same family. Make no mistake about it, FCC has one property and its in start-up mode. For those that do not remember when CCU was in start-up mode the stock was trading at $3 bucks and we had not seen the other 10 million shares in the private placement. Will the same fate befall FCC? Who knows, but as they same in this business xxit happens and CCU is a good example of that.
CCU's share price has been significantly hammered because of the number of times management stubbed their toes- remember the problems with getting ore on the leach pile, running out of acid, etc., etc. All those same ills can befall FCC, or at least the possibility is there for it to happen, whereas all of that is behind CCU; we will see increased daily production numbers, Terrazas will be financially viable and the company will make money this quarter. All good reasons to hold and accumulate if your analysis and results come up the same as mine.
Lastly use any of the charting software and chart FCC against CCU in the past two months and you will see that while FCC has peaked and is coming off of its highs, that CCU is dong the reverse. I predict that with time that the gap will be narrowed and that FCC market cap will increase toward 500 million and FCCs will remain at the 200+ million (they are now at roughly $350 million and $200 million respectively).
In the end, best wishes to all. Clearly both companies have their own good, and questionable points. I have owned both and have made money on both, although I now hold more CCU as I feel the upside is higher with CCU than with FCC.
happy investing.