Thu, Jan 29, 2015, 4:08 AM EST - U.S. Markets open in 5 hrs 22 mins

Recent

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

Silicom Ltd. Message Board

  • dividendcity dividendcity Mar 26, 2014 7:11 PM Flag

    Dilution

    From the data I see, SILC has about 7.1 million shares. This offering can add more than one million shares ($80,000,000 / share price), which is about a 15% dilution. That is about the fall we had today! Comments appreciated

    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • A dilution is not necessarily negative, it depends on the price that they are going to issue the new shares,
      and what they are going to do with that money.
      I see no insiders transaction even while the share was around 70 $, which means that they think that a 70$ per share is not high, therefore I see no reason to issue the shares below 80$, which is above the share price as it was before yesterday, and from that point of view the shareholders are not going to lose anything on the contrary they are going to gain.

    • $80,000,000 could be 2m shares at $40. Doesn't say 1m. No idea why there are only about 2 people here who are questioning this dilution. Everyone else is chugging kool-aid.

    • It's only dilution if they throw the cash out the back door. It's not like a company that is burning through cash and has to raise it to stay afloat. Remember, Shaike is the largest shareholder and he took the 15% loss today too. He knows what he is doing, and apparently additional shares is a better way to raise cash than a simply loan.

      Sentiment: Strong Buy

    • Exactly what I was thinking. The nervous investors expect full level of dilution in the short term. I am in this stock for the long term (since the share price was single digit) and see no reason to mistrust managements motives.

      • 1 Reply to lokeren45
      • Why would I question it? I predicted it back in one of the split discussions. This is actually brilliant, and long term will benefit greatly. On the heels of needing to move to a larger manufacturing plant (Turb also told you that expense was in the numbers) and on the heels of already raising inventory at a rapid rate, apparently that rate is not perceived as a susatinable rate for seen demand. The dividend is a direct reward for the growth, the offering is to fuel future growth. See amatuers train until they gete it right. Professionals train until they can't get it wrong. There is a huge difference in the two.

        You all wanted liquidity, you get it. I proposed issuing 7 million shares in the 60's the same effect as a stock split. except the companies balance sheet that we are all siphening off of improves to allmost blue chip status as a micro cap. The future doesn't look any better anywhereThe weak hands went out, and will miss the upswing, buy in late, and sell early again. Just be happy they continue their insanity. Vast majority of those shares in the panic selling, went to strong hands. Some to turb even.

 
SILC
36.94+0.70(+1.93%)Jan 28 4:00 PMEST

Trending Tickers

i
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.
Nokia Corporation
NYSEWed, Jan 28, 2015 4:01 PM EST
Electronic Arts Inc.
NASDAQWed, Jan 28, 2015 4:00 PM EST