Quote:
Originally Posted by Krovikan
Assuming the stock exchange and SEC allows them to, and they have a strategy to use that capital. Otherwise, the value of the company per share won't really change.
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The SEC has blocked companies from issuing overvalued stock in the past (Hertz, recently) but it isn't common. And I suspect they'd feel that ending the squeeze would be in the public interest. Maybe maybe not, but it's not impossible.
But I definitely disagree that it wouldn't add any value. Right now their business is probably worth somewhere between $0 and $30 per share. If they doubled their shares outstanding at $200 do you honestly believe the extra $100/share in cash wouldn't affect intrinsic value?
When the shares are massively overvalued selling some for cash adds value. Its the exact opposite of an undervalued company doing an accretive buyback.