I beg to differ again. If shareholders approve the authorization, they give the board all the approval they need to do whatever they want (legally) with the shares. Just as the SEC does not have to approve borrowings by corporations, which also affect shareholder equity, they don't have to approve stock offerings, as long as all due diligence is done.
The SEC can step in if there is some hint of illegality. But they don't care if a company is making or losing money, whether their stockholders are making or losing money or whether this particular "authorization" will dilute shares. That's done every day. They simple make sure all the "i"'s are dotted and "t"'s are crossed. That's it.
The SEC wields an ungodly amount of power.
That's very true, but they are NOT the "Consumers Union" for investors. They are there to make sure all laws are followed in the market for stocks, bonds, securities. Just because something is bad for investors (short or long term), does not mean that the SEC will step in. They could care less. But try to scam them......
My bet is the stock moves with the market, i.e. no abnormal downward movement.
57,000,000 shares were given to ATI shareholders for that merger.
I think they are doing it to have the ability to do future stock mergers and issue employees stock options, etc.
I don't think that they are so weak that they need to engage in a dilutative transaction to raise capital.
By the way if the situation was that dire for AMD selling first thing in the morning would be no help. Stocks seldom open at the previous nights close. So anyone thinking they could get out now is already screwed.
57,000,000 shares were given to ATI shareholders for that merger.
I think they are doing it to have the ability to do future stock mergers and issue employees stock options, etc.
I don't think that they are so weak that they need to engage in a dilutative transaction to raise capital.
By the way if the situation was that dire for AMD selling first thing in the morning would be no help. Stocks seldom open at the previous nights close. So anyone thinking they could get out now is already screwed.
The SEC wields an ungodly amount of power.
That's very true, but they are NOT the "Consumers Union" for investors. They are there to make sure all laws are followed in the market for stocks, bonds, securities. Just because something is bad for investors (short or long term), does not mean that the SEC will step in. They could care less. But try to scam them......
essentially thats what i was getting at.
And my point as well. Dilution of a companies stock is NOT an act that the SEC considers illegal. While vague, the proxy stated precisely what this was, simply an authorization for doubling the stock shares. And that's just fine with the SEC. Drive your company into the ground on bad investments; That's ok, as long as you don't hide your stupidity from the investors.....
sailer
Splendid
- Apr 9, 2006
- 4,970
- 2
- 22,810
The SEC wields an ungodly amount of power.
And that wielding, I think, could end up happening. If someone in the SEC decides that there have been too many stupid decisions, too many false statements made, too much stock being sold by corperate heads, they could instigate an investigation and put a hold on any issuance of stock, or some other nice thing. Hate to think what would happen to the stock price then. \
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lol, ya, ive ben buying alot of AMD lately to,as it gets lower, ill just buy more, if a buyout occurs, ill get a good premium,or better stock in a stronger company, or both, and if one doesnt occur, then AMD will hit 16 or 17 again,and ill bank then, either way, im good
Brokers are at the bottom of the talent pool as far as portfolio management.
The best in portfolio management go to institutions, pension funds, hedge funds, and endowments; this is where they can play with billions.
The nex set do private wealth management, for clients worth 10,000,000+.
The rest are available to the public and take what they can get; they get to screw around with a couple $100,000.
The best in portfolio management go to institutions, pension funds, hedge funds, and endowments; this is where they can play with billions.
The nex set do private wealth management, for clients worth 10,000,000+.
The rest are available to the public and take what they can get; they get to screw around with a couple $100,000.
Jack, with all due respect, this is mostly broiler plate language. They will put everything they could do with the shares in there so they have all options open, now and in the future.
Also, just because they have the capability to issue 50% more shares doesn't mean they will. Those share could hang out and unissued forever. If the shares aren't issued its not dilutative. My bet is on acquistions.
They have the capability to currently issue 750,000,000 shares, but as of now the total Shares Outstanding is: 548.6.
No need to debate, the market will tell us tomorrow if my understanding is correct. My bet is written above - promise I won't change it if I am wrong
If I am wrong I will write back to you and say the following, " Jack I was wrong, AMD is going to do a dilutative transaction."
Also, just because they have the capability to issue 50% more shares doesn't mean they will. Those share could hang out and unissued forever. If the shares aren't issued its not dilutative. My bet is on acquistions.
They have the capability to currently issue 750,000,000 shares, but as of now the total Shares Outstanding is: 548.6.
No need to debate, the market will tell us tomorrow if my understanding is correct. My bet is written above - promise I won't change it if I am wrong
If I am wrong I will write back to you and say the following, " Jack I was wrong, AMD is going to do a dilutative transaction."
sailer
Splendid
- Apr 9, 2006
- 4,970
- 2
- 22,810
True ,but the point is to get valid up to the minute expert opinion as it suits your portfolio.I cant argue with your points.
I won't argue the point on brokers much either. For myself, I used the term broker in a loose manner. I put in a call to my son, who is a tax accountant besides being into stocks, and he relayed it on to a couple people, one who works for the IRS up in Reno. None of them said anything good, and all advised to get out of the stock.
That said, they could all be wrong. So tomorrow, and the days to come, I may have a smile on my face, or I may be kicking myself. At least I'll know I did what seemed best and didn't just sit around and do nothing out of fear.
And what makes it non-preditory, and thus much worse for AMD, is that Intel did it without going below their costs and continued to make money while they did it.
So not much the FTC can do for them either. Cost advantages do not count as being "preditory". Unless free enterprise has now been ruled preditory.....
So not much the FTC can do for them either. Cost advantages do not count as being "preditory". Unless free enterprise has now been ruled preditory.....
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