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***Official*** 2010 Stock Market Thread

Page 21 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.
eLiu said:
Someone can correct me if I'm wrong, but let's take a simple example. Suppose company A has 100 shares outstanding valued at $1 a piece. So company A is worth $100.

If company A releases 100 more shares of stock onto the market, assuming their value stays constant, the shares are now all worth 0.50/share. So companyA gets 0.5*100 dollars to spend on things, and the people owning hte original 100 shares are angry b/c their shares got devalued. Releasing new shares is called "dilution". In general, dilution is viewed as a sign of weakness & usually the stock takes a hit after dilution; e.g., the company is releasing stock to raise money b/c they're in trouble. In this case, the holders of the RMBS convertible will convert them to shares if the price goes over 26.80, meaning that the net # of shares will increase (even though RMBS didn't release them directly).

The real story is more complex than that. Sometimes dilution doesn't signal weakness (HGSI for example, rose after its several dilutions). You can look into that more if you want, but the message is that dilutions aren't always a straight up negative. It's particularly complex with say biomed companies that are simply developing products and don't really have any kind of income.
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keep in mind that it isn't as completely as bad as it sounds. this is true because with the transfer of the convertible bonds into shares, the company now no longer has that bond debt to pay back.
 
So.... offering @ 2. What say you all? I could maybe scrounge up couch change for 2-300 shares.

Anybody buying more?
 
Actually, I just found out that offering is @ $ 2 as well. Not bad. I hope it finds support at around $ 1.95.

And grat for me, I just became an investor of GNVC. lol.
 
I sold off three other positions and am buying a boatload of GNVC. My risk-o-meter just shot up...
 
They still have the prostate phase 1 study news coming..once that is out, it should go up at least 50cents with that news. They somehow deleted the entry from the website, maybe they didn't know people would use that site for news materials.
 
richardycc said:
They still have the prostate phase 1 study news coming..once that is out, it should go up at least 50cents with that news. They somehow deleted the entry from the website, maybe they didn't know people would use that site for news materials.
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When's that due out?
 
I only had $100 cash in my account since I'm tied up elsewhere but I bought some GNVC @ 1.79. A measly 55 shares but it's a start.
 
I'm glad I stayed out in the 1.8x range but this thing is not developing a floor at the moment.

In @ 1.7895 for a few shares. My emergency fund just took a hit 🙁

Also, Etrade reports in 2 hours. I'll be in a meeting so I expect to lose quite a large pile of cash on paper when I get out at 5.
 
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Ok I bought a couple of Feb $15 LVS puts @ .62 today. This market is not doing well. May as well cash in.
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Never buy a stock because you think it's cheap. I too have became "investor" in a few stocks that I thought was cheap.
 
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