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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 9188
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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my favorite stock just sent out notice of a meeting/vote on

Resolved Question:

my favorite stock just sent out notice of a meeting/vote on wether to issue more stock certificates for public sale up from 10million to 35 million. Will this move cause the value to go down on the shares I now own? The company is Chenniere (LNG).
Submitted: 3 years ago.
Category: Finance
Expert:  Lane replied 3 years ago.

NPVAdvisor :

Hi, lots to alk about here, but lets start with what may be obvious

NPVAdvisor :

SURE, there's always a dillutional effect (in the short term) when the supply of something is suddenly increased

NPVAdvisor :

However, this is a company that is on the cutting edge of an alternative fule thatb is really showing some promise

NPVAdvisor :

Som think that this move is just a show of strength ... that given the excitement around the liquefication of natural gas

Customer:

i purchased shares at $10 is now 20

Customer:

wondering if it would be wise to pull out before vote on 2/1

NPVAdvisor :

Very nice ... my bet is that things may level out now ... both because of this AND the populararity .... (not new any more)

NPVAdvisor :

Depends on whether you're a short term trader or a long term investor

Customer:

more on the long side

NPVAdvisor :

They're doing what entrepreneurs do capitalizing on change

NPVAdvisor :

You go ion at a good time

Customer:

yes i know

NPVAdvisor :

but again, not inly are they capitalizing (exploiting) change

NPVAdvisor :

they are creating it

Customer:

that is good ,right?

NPVAdvisor :

yes

NPVAdvisor :

THe capital avai;ability of old line oil companies

NPVAdvisor :

but innovation

NPVAdvisor :

I know you know this but they built the first plan in '64

Customer:

would the devalue equal that of the increase 35tp 10?

NPVAdvisor :

(plant)

NPVAdvisor :

If so, now we're talking the stuff of crystal balls, I think only in the very short term

Customer:

ok thank you

NPVAdvisor :

I think if you ride our this POTENTIAL devaluation that is just a mathematical phenominon

NPVAdvisor :

You'll capitalize on the kind of thin Buffet and Lynch talk(ed) about

Customer:

and maybe buy more on the cheap...

NPVAdvisor :

truly making something for which demand will only grow over time

NPVAdvisor :

and being a pioneer with economies of scale

NPVAdvisor :

YES

NPVAdvisor :

that's exactly what Buffet would do

Customer:

lol

NPVAdvisor :

once he commits to the fumental; value

NPVAdvisor :

look for the buying opps

NPVAdvisor :

Just so many unknowns today

NPVAdvisor :

but growing population and dependence on technology....pretty predictible

NPVAdvisor :

Onfinance guy's opinion, but showing some guts thriough the next couple of months when the feint of heart leg go mugh be rewarding

Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 9188
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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