GREY:NMKEF - Post by User
Post by
Porksausageon Oct 07, 2016 12:10pm
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Post# 25322842
There is a downside
There is a downside
I think there is one downside to poor share valuation from a corporate perspective. That is that when the next stage of financing is needed, ( Which is a very large amount $) the amount of shares offered for cash will be much larger than need be. Dilution is poison to profits an solvency. Poor share valuation and growth rate may come back to haunt this company for quite some time. I don't think it's reasonable to expect the share valuation to suddenly increase just before a major funding move. Usually it's quote the opposite. Thoughts?