There are plenty of stocks with 2Billion plus shares on issue. Arafura 2B on issue, Dreadnought 3B on issue. Both with market caps 10 x or more LNR.
Now if LNR SP remains the same, then yes your stock holding may be worth 1/3rd of what it is today. But if it rises then it cancels out the dilution and doesn't mean a thing in the long run.
I'd rather have diluted shares in a $100M plus MC company than undiluted in a $14M or less company that can't make progress on it's projects.
It's like the Chicken and the egg, which came first? Do you wait for a high MC to then issue shares, or do you issue shares and unlock a higher MC?
On a converse point it actually increases the liquidity in trading for the stock, and may actually add to more price movement intra-day.
LNR could always do a share buy back once in production/profitable, or a consolidation. Or if the MC increases significantly it won't even be a consideration as it will be inline with industry peers.
Personally I don't see the current number of LNR shares on issue or future plan to issue shares as a major red flag. It doesn't change the project, geology, nearology or progress to date.
LNR Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
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