Post by
Marky2 on Apr 12, 2017 4:23pm
Can someone please explain
What is going on with this stock? When a company splits its stock, let's say 4 for 1 stock this is diluting the stock and should knock down the SP because of the dilution affect....more shares out there....With DRYS they just completed a 1 for 4 reverse stock price offering....this is CONSOLIDATING , decreasing the amount of shares by 25%....this is something I do understand..Should this be good for theSP....as we saw today...They came up with 2.5$ million for a dividend payment..shouldn't that be good for the SP....The SP according too yahoo finance (cdn ) says the 1 year target is like $4,000...The one year high is around $2 200......What exactly is the CEO doing bad to the shareholders..I don't understand the dynamics of his actions?? Please explain the situation...many thanks ....MARKY 2
Comment by
MayorRobFord on Apr 13, 2017 9:53am
The RS doesn't dilute the stock itself. But the offerings do. They didn't even finish the previous $1B shelf registration in offerings, and they already registered another $2B more. You can count on this George E to keep spending the money he raises, and keep diluting the stock.
Comment by
Marky2 on Apr 13, 2017 3:15pm
OK,, but my problem...how could the high have been over $2,000 and how could Yahoo say that the year target is over $4,000.......that I don't understand...
Comment by
Marky2 on Apr 13, 2017 5:04pm
Thank you! Now I understand it! Not happy about it though.....
Comment by
Marky2 on Apr 13, 2017 5:07pm
So why are so many millions of trades going on.or in other words, why are people buying this crappy stock?
Comment by
ufoolme on Apr 17, 2017 9:39am
Most are just trading the price swings. It's very volatile, ideal for day trading if you can time it right.
Comment by
Marky2 on Apr 13, 2017 5:33pm
Ufoolme...one last question...How much do you think the dividend will be per share? They have 2.5$ million for that put aside....
Comment by
ufoolme on Apr 13, 2017 12:47pm
The Rd has nothing to do with dilution. It's the constant issuing of new shares to raise caoital that is killing it. Do some research on the share issues over the past 2 years.