The new stock dilutes that value of the old stock. For example if you have 100 million shares floating and you issue another 2 million, the value of the pre-existing float is diminished by 2% unless investors are stupid, which they often are.
Ok you are Google. You want to raise cash. Max cash for your 5.3 million new shares you are going to issue.
If you are Google, you can pick when to issue the stock. Now if you want to maximize the proceeds, you are going to pick a specific issue date from a universe of issue dates that, in your view, will maximize the proceeds on the sale. What I am saying is I notice that Google has selected a date BEFORE the next scheduled Google earning report. Ding ding ding
Google is down 10 points in the pre-market today, Thursday, March 29.
Today and tomorrow are going to be very interesting.
I mean, just can't make this stuff up.
Check it out:
http://www.fuckedgoogle.com
"I guess when Eric Schmidt (the CEO) said last month that Google is not run for the interests of its shareholders, he wasn't joking. As far as Google is concerned, if you own their stock, you can just go [censored] yourself because they DO NOT CARE ABOUT YOU. The CEO actually said that. That's not a joke- he literally said it."