HoustonKing

A-Power and AgFeed: The Importance of a Strong Balance Sheet

Your comments tell me you know nothing about running/owning a business. No one who is positive about their company ever wants to give up a significant percentage of it unless all other options are gone.


On Jan 02 11:44 AM ChinaStockGuru wrote:

> First off, to address your point. This is Econ 101: if you borrow
> money, current investors get the benefit of the increased earnings.
> If you issue more shares, the now diluted base gets a reduced EPS
> benefit.
>
> Borrowed money is riskier, but more beneficial if you're successful.
>
>
> The true issue here is that FEED is in a commodity business and they
> are going to suffer typical commodity volatility in their margins.
> They are finding out the hard way that they need more equity to survive
> the current downturn. There is no way they grow earnings 100% next
> year unless business conditions turn. Don't be surprised if they
> need to issue more shares again. And, ask yourself this...if they
> grow earnings 50% but need to issue 100% more shares, how are you
> looking?
>
> I can't predict when the cycle turns or what FEED will earn, but
> I can say that APWR doesn't need to dilute anyone to stay strong
> for the next cycle. They are better positioned due to their balance
> sheet.

Shorting the Long Bond: The Obama Solution Meets China

I think you are full of it. Obama will save us from this because people will respect us more from the change and hope that he is bringing. Doom and gloom is all you are. You are a typical liberal San Fran loser.