RE:RE:RE:RE:RE:RE:RE:Dilution, again ! True but the growth we are talking about is prefaced on generating more sales revenue.
And as i said before to keep the growth trajectory high, management needs either PP or debt to raise capital to keep up with the burn rate.
For example:
If they issue 50 million shares to raise a 1/2 million dollars and end up generating 3 million in additional sales it makes sense.
If they issue 50 million shares to raise 1/2 million dollars and end up generating 1 million in additional sales that is a problem as management cannot execute on its business plan
at the end of the day it all comes down to management's ability to execute and the shareholders trust in management to execute it.
To your point - if the growth rate in # of shares outstanding far exceeds growth rate in sales, we have a problem and a corporate finance decision needs to be made. However if the new float and the funds raised are used to generate 2-5x in revenue wouldnt you consider it a good use of funds?
Which is why it is prudent to have an annual test to see how much additional revenue management is adding and that feeds to the overall enterprise value.