GREY:TRIAF - Post by User
Comment by
AIGswapon Mar 14, 2011 10:23pm
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Post# 18285007
RE: RE: Market misunderstands TOL
RE: RE: Market misunderstands TOL1) Read as many annual reports and investor presentations as you can. I haven't found a book that'll teach this stuff...
2) Yes juniors and intermediates are always issuing equity. Dilution is not a problem if the proceeds of the financing are utilized in a way that provides for a return on capital greater than the cost of capital. This business is very capital intensive. Of course everyone uses debt financing and cash flow, but for a junior generally those are insufficient to rapidly develop the assets. More so if they are doing acquisitions.