Gladstone about to Breakout?

One reason the shareprice may not appear to be rising is the dilution. Shares in issue as at 31 August 2003 41,116,996 now shares (fully diluted) in issue 45,616,996 a 11% dilution.

EG: shareprice as at 31 August 2003 12p would equate to 10.68p but now 12p so an actual increase of 11%.

The group profit was really the £170k reduction in director fees/bonuses compared with Aug-2002. However the options granted will provide some compensation (£43k each for three years) to two directors at the expense of diluting existing shareholders. (well at least it saves the NI contributions).

The Board will also raise new cash from issuing more shares, so unless there is some positive signs of real sales growth I would expect any further dilution to hold back any uplift in the share price for a while.