How much will NFLX go up when they issue more stock?
To raise money? Per the CEO at the last CC. he stated they needed to raise cash for content.
What to do think the share price will shoot up to with a stock dilution?
Losing content and insiders selling boat loads of stock seemed to help this stock, so I can only assume if they issue more shares to cover debt and content, it should shoot up to 300 or so don't you think?
current practice is issuing senior notes to raise cash. the pro is notes will not dilute share value if not convertible. also, it adds pressure to management to make the underline business profitable. under today's low interest climate, bonds or notes are the best if NFLX doesn't want to kill the share price to irritate shareholders.