I agree that capital raisings dilute earnings but the reverse is if you fund growth through debt and your revenue is not forthcoming then your stuffed. what generally happens is the company being desperate to pay down debt raises capital in desperation generally while SP is already low and dilutes even further. Property trusts are a great example. I also think the appropriateness of debt needs to factor the cyclical nature of earnings and it's clear they are volatile. I also agree that earnings growth does not have to be simply made through acquisition. Organic growth often is far better as is prudent cost management. I am satisfied the company is OK given the macro circumstances. I at this stage am trusting them that the personnel growth is a function of them being comfortable with improving margins and revenue growth. We should see a Euroz update within the next few days. If I get one I will lost the details
NMS Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
