[Boatanchors] RATSHACK?

[Jim Wilhite]

Actually a large part of selling stock is when a company has a business 
model that makes money they want to expand.  It seems as if there are two 
ways.

1.  Take the profit and expand rather then pay dividends.
2.  Sell stock and use the money to expand against future profit.

The latter is preferred since the share holders get their dividends and the 
people who own the stock is the one at risk of the stock not increasing in 
value.

Motivation:  Keep costs low, sell only profitable items, sell items that are 
in demand by the largest group of people.  Damn Cell Phones.

73  Jim
W5JO

----- Original Message ----- 
From: "Brian Clarke" <brianclarke01 at optusnet.com.au>
To: <k4pdm at yahoo.com>; <boatanchors at mailman.qth.net>
Sent: Monday, May 30, 2005 6:49 AM
Subject: Re: [Boatanchors] RATSHACK?


>
> Lets do a little business analysis - please correct me if any of my
> assumptions is incorrect.

> 2. The main purpose of floating a company is to raise money by selling
> shares. The best way to use this mechanism is to maximise the share price
> and optimise the dividend payouts, so reducing the cost of capital 
> employed
> in doing business in the long term.