Solarfun Power: Classic Short Sqeeze Setup [View article]
David, You talk of the dilution of the stock if the bond holders redeem ... but is it really dilution? In redeeming the shares they move the bond liability off the balance sheet. This means that the shareholder equity of the SOLF goes up by the amount of the conversion. Hence, the value of an existing is not really diluted. After conversion there are more shares, but there is also more equity. Am I missing something?
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Latest | Highest ratedSolarfun Power: Classic Short Sqeeze Setup [View article]
You talk of the dilution of the stock if the bond holders redeem ... but is it really dilution? In redeeming the shares they move the bond liability off the balance sheet. This means that the shareholder equity of the SOLF goes up by the amount of the conversion. Hence, the value of an existing is not really diluted. After conversion there are more shares, but there is also more equity. Am I missing something?