how much avb is too much (seriously)?, page-22

I know a fair bit of AVB but not a holder.

The main thing with any explorer that has a good tenement (like AVB do) is the cost of capital. The value of this company assuming no takeover (I personally think that if it was going to be taken over as an explorer it wouldve happened already) is completely tied to the cost of financing. If the financing results in a 100% dilution, or a 20% interest rate with 5 year payback, the economics of the project change significantly.

Without finance its still a speculation so you have to be careful. I know personally, if the tenement is good and financing is locked in at a decent rate, there isnt too much to worry about and lower share prices become cheaper entries.

Lower share price (pre financing) can lead to a much larger dilution of shareholders as any lending institution will usually wish for an equity component, either in cash or in shares of the company.