You only make money when the share price goes up and the profit is crystalised.
Let me ask of two theoretical situations in the next two paragraphs:
If you invest into a share at $1 with the company market cap of $100m (100m shares) and then the share price goes to 50cents but the market cap is still $100m because the total number of shares went from 100m to 200m ... do you consider this as neutral?
If you invest into a share at $1 with the company market cap of $100m (100m shares) and then the share price goes to 75cents but the market cap increases to $150m because the total number of shares went from 100m to 200m ... do you consider this as an overall win?
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One thing you can say about issuing shares is that the more shares that are issued the less "blue sky" upside the share has. Absolutely understand that a company like Nuheara has to issue equity to advance itself (banks will NOT lend to Nuheara) however it seems many people don't actually know all the risk that is involved with start-up company. Most successful investors are those that understand the risks to their investments.
Investing is to make money. Money is the only parameter that is important in investing.
I look at my bank account after a trade and if I have less money before the trade then its a FAILURE. If I look at my bank account after a trade and I have more than I started off with its a SUCCESS. This is governed by the share price. Its Black and White.
Nice product is an opportunity for a company to make a name for itself. Has to be followed up with mass commercialisation. Seen many products (technology and biotech) that fail in the last hurdle.
Shareholder "loyalty" means absolutely nothing. A person holding 1million NUH shares for 2 years and a person that just purchased 1million NUH shares have the same voting power. You can talk of capital gains discount if you hold for over 12 months but the trick to this is to actually make a profit first.
NUH Price at posting:
6.1¢ Sentiment: None Disclosure: Not Held
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