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Forterra Environmental Corp FEVCF



GREY:FEVCF - Post by User

Comment by hjangelon Apr 01, 2009 2:53pm
244 Views
Post# 15888746

RE: conspiracy

RE: conspiracyOne of the most important criteria when choosing a company for investment purposes is the attitude of management toward excessive dilution and debt IMHO.   Personally prefer to invest with a company whose management collectively exhibit a cautious and conservative attitude toward dilution/debt.

As to going to the market to raise capital from financial institutions being a way to bring in a solid financial arm to back a solid product - given what is known today about the activities of financial institutions when it comes to orchestrating the global economic collapse - what, if any of them would be considered a solid financial arm?  Canadian financial institutions are not Canadian banks, and the asset backed paper fiasco in Canada is more than enough evidence of what they're capable of.

Generally, when venture stocks take on debt via a brokered financing with a financial institution, millions of cheap shares and warrants are issued and those shares are dumped en mass at the first opportunity for a quick double by the institution.  They are not in the buy and hold business - they are in the "acquire cheap and sell in the short-term" mode of operation.

Staolin is right on point regarding the negative effects of servicing a high debt load on a company's ability to continue to operate IMHO.  Servicing debt (principal and interest)  is a drag on revenue and FTE does not need to create anymore drag on its developing revenue stream than is absolutely necessary.  Excessive debt/dilution is not good for the company and it does nothing to benefit retail shareholders IMHO.  The less amount of revenue that has to be used to pay back capital plus interest the better, that way there will be more $$$ in the company's coffers to put to work continuing to develop and grow the company for the benefit of management and shareholders alike IMHO.

GLTA - HJ



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