Monday, November 5, 2007

BKC

Today Burger King reported good numbers but went down in price. The culprit is the dilution of shares. It's unfortunate that occurred but it is a fear that I have when I invest that the share issuance is greater than the value of the company. The company itself isn't issuing new shares but insiders are selling more of their shares which will increase the float, ie shares traded.

There would have to be one hell of a reason to buy reissued companies done by private equity for this reason alone.

No comments: