RE: Severe dilutionI don't like dilution either, but there is a difference between dilution for a good reason and dilution for nothing. Some companies just issue more and more stock, do nothing with the company, and drive the price down to zero. This is not the case with SST. If the market was worried about dilution then SST would not be able to do a massively oversubscribed private placement at $1.45, and the market price of SST would have dropped in half. There is a greater wisdom to this CS-SST deal that you just cannot see yet. Management needs to really work at explaining that wisdom to its shareholders. Management *knows* that the deal has confused shareholders (especially those of CS) and will likely do a conference call soon to explain it more thoroughly.
Another thing...there is a difference between dilution which floods the market, driving the stock price down, and dilution which results in stock held for the long term, increasing one's position in a company. It is just common sense that CS will be judicious in its selling of SST shares, and won't sell this stock until the market can easily handle it. The stock won't become part of the public float for years to come, so it won't hurt the stock price which is presumably what you are concerned about. I believe management is working on getting the SST market cap into the $250M + area this year but they cannot say this publically. They have much bigger plans than just a lousy 1 million ounces of silver production credits for SST. The CS-SST deal leverages not only the 10% more SST they will end up with, but also the 20% they already own! SST is being groomed to have millions of ounces of silver production resulting from a combination of the SW (Silver Wheaton) model and an outright mine purchase. This will result in a stock price at many multiples of its current price. CS intends to get a big return on its investment in SST. Investors won't believe it until they see it. They will see it. I hope you will remember this posting and come back to it at the end of the year.