DilutionMetalhead and I have an interest in a lot of the same stocks, namely Skeena, Artemis, and Troilus.
I read his posts, hope that all his predictions come true. If they do, I'll benefit immensely. In the last few months I've lightened up on Troilus and Skeena, added to Artemis. Most recently, about a week ago, I read a post of his re Skeena and how he had sold some after the recent run up. I had done the same, but at lower price. Long story short, I totally agreed with his reasoning, and sold some more at $6.40 per share!!! Thanks for the inspiration, metal.
All these pleasantries aside, metalhead is oblivious to the pernicious, wealth-destroying impact of dilution. Yes, it's obvious that in order to build a mine you need to raise equity. Metal is an infallible stater of the obvious, and a dutiful re-stater of the corporate line. In my old age, on the other hand, I've become a bit of an irascible stuff-disturber. I have become such as a result of experience.
This being a Friday evening, I won't go delving into my files to document chapter and verse, but I would suggest one and all to look at a 5-year chart of, for instance, Marathon Gold, Argonaut Gold and T-MAC. Unfortunately, you probably won't find a chart for TMAC as it was taken out by Agnico after previous management ran it into the ground. I could probably also include Sabina on this list. I think Sabina was taken out at around $1.85 and I remember much gnashing of teeth and rending of flesh by disappointed, oblivious shareholders who failed to recognize the corrosive impact of repeated capital raises, damn the torpodoes, full speed ahead.
Luckily, I avoided the Sabina and Marathon disappointments, and missed the worst of Argonaut's collapse. TMAC, let us be charitable, was a lesson in humility. When I get interested in a stock, I get interested both in dollars and emotional energy. When I see mangement turn treasure to dross I get upset. I am going to complain loud and long and point fingers on my way out the door.