Moving To Production
Some of the news today was good and some of it was not so good. The dilution is starting to really put up a head-wind against the shares as each share is diluted it becomes less valuable. Simple math.
103 Million shares of additional dilution is staggering for a small unprofitable company that still needs to raise millions of more dollars to get into production and meet operational and salary constraints.
EQT is making progress as a young shell but unfortunately the dilution is going to be a big turn off to new seasoned resource investors going forward and one additional kicker is there is much more dilution that will be required in the future.
Rockford has painted a picture and stated it at least 10 times on SH that big non-dilutive financing will be coming for EQT. Well I think we can lay that nonsense to rest.
There is one thing I can say without much bluster at all, and that is EQT management has proven that they can and will dilute the living sh*t out of current shareholders and not bat an eye.
I'll take a wild guess and say that over the next 6 months with additional PP's required and such that another 100 million shares will be added to the O/S structure and once you get to around 300 million share outstanding there is usually some dicey cr*p that follows and it isn't positive for current shareholders.
Like I said there is some good news, but more of the same sh*t that plagues the resource industry in general. Looks like all of the non-dilutive talk was just more of the same ...........BS.
Dilution and rollbacks……….the investment killer for the small investor. Both of those are probably somewhere in our future.