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16:45
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Originally posted by eshmun
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Some here don’t understand the effect of dilution on EPS going forward and IMO some people here need a lesson in investing 101 if they think a balooning share register doesn’t matter. I was thinking of going through the WAF vs DCN funding history comparison to help try and explain the difference but it involves quite a lot of research and work which I don’t need to do as I understand the effect of the difference between a capital raising to external parties and a rights issue to existing holders and although I like to help educate, sometimes the best education is experience.it diluted our rights to a share of the company’s earnings forever. Once you realise this you understand that you can’t wind this loss of value back. A share consolidation doesn’t do it as the the value loss is baked in at the time of the share issue.
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I think this a bit of an overreaction. WAF still has an amazing future and while we would be a little better off if they had raised at a high valuation (or raised a little less), any extra dilution can be countered by buying more down at 23.5c (which I did).
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