Not exact matches
In recent years, gold miners have done a poor job delivering shareholder value due to the cost overruns and excessive
share dilution that accompanied the rush to put production on stream.
The lead investor may negotiate better terms, defend against unfair
dilution by negotiating with venture capitalists during follow - on financing, mentor the company and represent small investors on the board,» says Nick Tommarello, the co-founder and CEO of crowdfunding platform WeFunder,
in a letter to the Committee of Financial Services
shared with Entrepreneur.
The dilemma for Fidelity and Hartford, says Drew Nordlicht, partner and managing director of Hightower Advisors
in San Diego, is whether to make subsequent investments at their own price threshold, or to use Blackrock's 20 percent higher valuation, which means a
dilution of their own
shares.
Total said it will raise first quarter interim dividend by 3.2 percent, while Scrip
shares issued
in January for the second 2017 interim dividend were bought back to prevent
dilution.
If you purchase
shares of our common stock
in this offering, you will experience immediate and substantial
dilution of $
in the net tangible book value per
share, assuming an initial public offering price of $ per
share (the midpoint of the price range set forth on the front cover of this prospectus).
Therefore, if you purchase
shares of our Class A common stock
in this offering, you will experience immediate
dilution of $ per
share, the difference between the price per
share you pay for our Class A common stock and its pro forma net tangible book value per
share as of September 30, 2010, after giving effect to the issuance of
shares of our Class A common stock
in this offering.
Dilution: is the reduction
in the investor's ownership percentage of a
share of stock caused by the issuance of new dilutive securities.
The exercise of outstanding options to purchase
shares of our Class A common stock will result
in further
dilution.
Alan Abelson presents an interesting chart
in the latest issue of Barron's, showing that if extraordinary charges and option
dilution is factored into earnings, growth
in earnings per
share from 1995 to 2001 drops to zero.
Dilution in pro forma net tangible book value per
share to investors purchasing
shares of our Class A common stock
in this offering represents the difference between the amount per
share paid by investors purchasing
shares of our Class A common stock
in this offering and the pro forma as adjusted net tangible book value per
share of our Class A common stock immediately after completion of this offering.
The purpose of the contribution was to retire such
shares in order to offset stock ownership
dilution to existing investors
in connection with future issuances under the 2009 Stock Plan.
The exercise of outstanding options to purchase
shares of our common stock will result
in further
dilution.
If you purchase
shares of Class A common stock
in this offering, you will incur immediate and substantial
dilution.
As a result of this
dilution, investors purchasing
shares of Class A common stock
in this offering may receive significantly less than the full purchase price that they paid for the stock purchased
in this offering
in the event of liquidation.
This
dilution is due
in large part to the fact that our earlier investors paid substantially less than the initial public offering price when they purchased their
shares of our capital stock.
Therefore, if you purchase our common stock
in this offering, you will incur immediate
dilution of $
in the net tangible book value per
share from the price you paid.
If you consider that the company had over 6.5 billion
shares outstanding, you realize that
dilution was taking more than $ 390 million
in value from the investors and giving it to management and employees.
There is
dilution in profits (dividends) per
share with sales of new
shares to ESOPs, and there is also governance
dilution.
However, for stock market companies, simply creating new
shares or issuing stock options by fiat that are given away to employees without the company selling them at full value, existing shareholders would experience an economic
dilution in profits (dividends) per
share going down because of a larger number of
shares and, importantly,
in economic value, being given away (
shares of the company are literally being simply granted to someone else, namely employees).
Indeed, weighing whether having employees and managers as partners can contribute more to all shareholders of a stock market company than the
dilution of a
share plan that is based on newly issued
shares, is common
in stock market companies.
This
dilution is an issue
in publicly traded stock market firms, but it has been historically addressed by keeping the size of the ESOP modest compared to the rest of shareholders (most ESOPs
in stock market companies are under 20 %) and by establishing a corporate culture where employee stock ownership is likely to increase the performance of the firm so as to offset the modest
dilution of profits per
share of non-employee shareholders.
Therefore, if you purchase our common stock
in this offering, you will incur an immediate
dilution of $
in net tangible book value per
share from the price you paid, based on an assumed initial public offering price of $ per
share (the midpoint of the price range set forth on the cover of this prospectus).
To the extent that outstanding options are exercised, new options are granted under our equity incentive plans or we issue additional
shares of common stock
in the future, there will be further
dilution to the new investors participating
in this offering.
In such firms, the board and executive management assess if the type of employee
share ownership offered is likely to have a greater positive effect than any expected
dilution.21
We have included the following
in our latest EPS projections: (1) Potential
share dilution from past private placement financing: 105 million to a potential 133.5 million IHI
shares outstanding.
During Moody's earnings conference call, management addressed shareholder return items, reiterating that the company would aim for a modest $ 200 million
in share repurchases
in 2018 — just enough to offset
dilution from employee
share issuance.
But regardless of the accounting treatment
in the 90's, these options became very expensive (and cost real cash) when companies began buying back their
shares to offset the
dilution that these options were causing.
In effect, by buying back
shares to offset
dilution, the irony is that the company was paying for the very
shares that they were giving themselves, despite their unwillingness to call it an expense.
Assuming completion, Wolters Kluwer intends to deploy the proceeds of this divestment towards additional
share repurchases of approximately $ 150 million
in 2018 and 2019 to mitigate the expected earnings
dilution.
There are so many other partners involved that there must be significant income -
sharing and
dilution, although as many ebooks
in Germany are more expensive than
in the US and UK there could be more cash to go around.
While
share dilutions happen
in stock investing, they are not nearly as common or as significant as
in start - up investing.
Dilution: The process of the reduction
in partial ownership of each
share of company stock due to the company issuing more stock.
In addition debt can be refinanced if rates move lower, and eventually is repaid; once issued,
shares represent the perpetual obligation of dividends and a
dilution of company control.
Stock
dilution is legal because,
in theory, the issuance of new
shares shouldn't affect actual shareholder value.
Management is usually forced into this
dilution exactly when it is most harmful - when the company is
in trouble and the
share price is low.
Another problem not incorporated
in the
dilution results from debt that management can pay off with common
shares instead of cash.
# 3 - «Management, however, responded by placing $ 60 million of 7 % convertible debentures (conversion price of $ 31 /
share)
in late June so the liquidity issue has been addressed and
dilution has been kept to a minimum.»
The
dilution of NAV /
share is a fact, but offset by the gain on the new
shares you could and should have bought
in the rights offering.
Now, I must point out: i) Independent News & Media is currently
in the throes of a debt & pension restructuring — this could possibly improve things, but I'm not convinced it's going to be sufficient, and / or
dilution for existing shareholders might be so bad ultimately the
shares might as well be worthless, and ii) I still say my zero valuation for Continental Farmers Group was about right (God, just look at cash, debt & cashflow
in their latest results), but shareholders are v fortunately getting bailed out by the Saudis at GBP 36p per
share.
Don't forget to factor
in future cash burn, the capex costs of the new mine, and (of course) oodles of
share dilution to come.
So
dilution from the convertible preferred will result
in the per -
share NAV declining close to 7 % for the common, and there goes the discount to NAV that appeared to exist last week.
Because the converts are trading at a premium to face value (because if converted they are more valuable than their liquidation value) but are accounted for only at liquidation value
in the NAV calculation, the conversion will result
in dilution of the total asset value and thus the NAV per
share.
Let's begin with FY - 2015 results: Revenue was up 55 % to $ 58 million, adjusted profit before tax was up 57 % to $ 8.0 million, while adjusted basic EPS was up 49 % to 12.71 cents (there's been
dilution in terms of placings & acquisition - related
share issuance).
In my opinion, however, ADGF's
share underperformance is due primarily to the ongoing
dilution described above as well as shareholder value destruction caused by generating returns below the company's cost of capital.
Management, however, responded by placing $ 60 million of 7 % convertible debentures (conversion price of $ 31 /
share)
in late June so the liquidity issue has been addressed and
dilution has been kept to a minimum.
Dilution In the world of finance, dilution means something is being watered down, typically earnings pe
Dilution In the world of finance,
dilution means something is being watered down, typically earnings pe
dilution means something is being watered down, typically earnings per
share.
There are a couple of ways to issue said
shares, but
in the case of
share dilution the existing
share price typically goes down.
But regardless of the accounting treatment
in the 90's, these options became very expensive (and cost real cash) when companies began buying back their
shares to offset the
dilution that these options were causing.
The demand can be great enough to keep the
shares at the same price, and investors may have already discounted
shares on the idea of the company raising more capital via
share dilution, so the outcome can result
in the price going higher after the news event is over with.
Fully convertible book value per
share assumes that you invest your dividends
in the common stock (without taxation), and thus compound your gains through reinvestment, taking account of
dilution.