all that matters is if the % dilution is less than the perceived...

all that matters is if the % dilution is less than the perceived increase in value to the company due to new working capital, the price will go up.

if the % dilution is more than the perceived increase in value to the company due to new working capital, the price will go down.

hypothetically say LYC is doing really well in 2018. they have profits of $300M. If LYC does a capital raising in 2018 to build a flying blimp, it will cause the price to drop because there is no perceived increase in value to the company. i think this is the scenario that lay people talk about when they mention 'dilution'.

if however, they are doing it to save the company, there will obviously be a perceived increase in future earnings by doing this. So complaining about it is stupid. because a larger slice of $0 is not better than a smaller slice of something.