Re: Share price vs. shareholder value (again)

Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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Re: Share price vs. shareholder value (again)

in response to

Share price vs. shareholder value (again)

Rainer

posted on Oct 18, 2016 06:06AM

No doubt, SP is not equal to shareholder value. And I guess you agree that it is a good strategy -

If SP < SV: buy

If SP > SV: sell

Hence - not caring about the SP can be dangerous for the company. Low SP is rising the danger of a hostile acquisition and causes unnecessary high dillution in financings like now.

For venture companies dillution is a necessary evil to pay management, to finance R&D and growth until profitability. But "unnecessary" dillution is in fact harming SV.

There is an easy way to do financings without harming the SV: POET could issue free tradable warrants to all existing shareholders (e.g. 1 warrant per 10 shares), with a short validity (3 month).