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  • trin2learn trin2learn May 5, 2012 2:53 AM Flag

    For those who are high fiving about the consolidation think about this....

    Z, I agree with your position completely.

    One additional point, the term "dilution" is often used when additional shares are sold by the company to raise cash. I understand that in many (most?) cases when companies raise money that way, it does in fact dilute exiting shareholders' value. However, hypothetically, if the number of shares are doubled, but the cash is used to double the value of the company, I don't see how that is dilution. True, as a percentage of the company one owns would decrease, but in my book, half the percentage of twice the company is equivalent. Besides, I've never owned enough shares to even contemplate it as a percentage. For me, it has always been the number of shares, and dollars per share, and as long as the product of the two numbers are the same, or increases, I'm happy. Trin