RE: What does material dilution mean??11 Dec 2018 14:47
it would normally mean (in a relatively healthy company) you issue new shares to generate cash "diluting" the present quantity issued and generating cash for the kitty however with debt for equity swap it means a current debt value percentage versus shares in issue multiplied by price as a percentage and other things like bonds issued as a percentage and that will give you an idea of who owns what.
what was a 4bn pound company can be "bought" for the price of the debt more or less.
I have lost tens of thousands with this sort of deal before. it could seem to the shareholder as if the company has gone bust.
any bond holders first in the que.
then shareholders. it could well end up where from 20 grand you might be lucky to get 2 quid.
dont get me wrong there is probably good money to be made jumping in day trading on low prices.
the name interserve MAY be tarnished to the extent that for investing purposes that the debt holders use a new name(s) and parts are sold off and/or the staff are transferred under takeover deals (if its you job that your thinking of).
perhaps I am pessimistic but having lost ALOT on shares where the work keeps on going but the "owners" change hands but that scenario would seem likely as a best guess. imho.
What WOULD concern me is how many on this board say look at how much I have made at this point on each post with the share price going through the floor. I certainly wouldn't take my eye off the ball at the moment.
maybe I am wrong perhaps its all stock market shock but I wouldn't want to think people are going to loose there money or I am adding to it with this post being pessimistic.
It is true there are shocks in the system at the moment (brexit, us president death, us/china, Christmas lull, oil etc)but the work is there.....the staff will do the work.....whether they will be called interserve (because people may not want to invest again after loosing thousands) and are owned by the present shareholders to any great extent or they will see ANY future dividends is another matter.
Personally I would look to get my money out.... before or after Christmas to get the best out of it I am not so sure about......