Wed, Apr 16, 2014, 10:45 PM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Dendreon Corp. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • Minn_sea Minn_sea Jan 21, 2004 1:45 PM Flag

    No Dilution


    Seriously, this is a dilution. Perhaps you feel you have the same percentage of book value of the equity. But, your ownership percentage of the company is reduced by the proportion of the dilution.

    To keep your same percentage ownership, you must by more shares. In this case (17.4% dilution), if you own 100 shares, you must buy 17.4 more shares to keep your percentage ownership equivalent to pre-dilution levels.

    True, there is more money in the treasury from the sale of the shares, so you own more "book value", but you still own less percentage of the company. Even that book value is diminished by the cost paid to the investment bank to make the offering (10% - 20%).

    Is dilution necessary in an early-stage biotech? Yes. Was the offering timed well for DNDN? Yes. Is it still dilution? YES.



2.690.00(0.00%)Apr 16 4:00 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.