As GMCR continues to grow it will become very important for them to have more shares outstanding.
The GMCR story is certainly gaining more and more interest in the investment community. Larger institutions will only take positions in companies when there ius enough stock that they can take a sufficient position.
In addition as the company approaches Mid-Cap size that opens a whole new world of mid cap growth funds that are potential shareholders.
Only two ways to get more shares out there.
1. Stock split 2. Secondary offering- While on one hand dilution is not good, on the other hand the company can use the money for acquisitions and growth into other areas of the country, Canada and so on.
It will be interesting to see how management and their advisors handle this situation, which I belive is only good for everyone.
So much attention being given to the Coffee Wars now. SBUX,MCD. This only bodes well for GMCR.
I believe, stock options go into the shares of the fully diluted EPS calculation as soon as they are vested and "in the money" so therefore being likely they will be exercised. So the fact they get "exercised" isn't the trigger.
I go crazy when I hear companies claim that stock options aren't a cash expense. If options weren't issued, companies could instead receive the cash for those shares instead of that cash going to option holders.