Fast screens to exclude serial diluters
- Share count CAGR > 20 percent over 4-8 quarters.
- Frequent S-1/424B filings, ATM updates, or equity line agreements.
- Convertibles with floorless or reset features.
- Warrants issued below market with anti-dilution protections.
Filing tells to read closely
- Subsequent events: new raises signed after quarter end.
- Use of proceeds that just fund working capital burn.
- Covenant breaches leading to equity cures.
- Compensation heavy in cheap options or RSUs.
Portfolio rules
- Cap position size when average daily dollar volume is thin.
- Demand stronger balance sheets (cash/liabilities > 1.0x) if dilution history exists.
- Pair dilution screen with NCAV/NTAV discounts to avoid paying for shrinking pies.
- Exit if share issuance exceeds your modeled budget without clear ROI.
Internal links and tools
- Balance-sheet events: Shares outstanding changes
- Volume tell: Interesting volume events
- Price pressure: Near-lows scanner
- Sentiment: Short interest changes
- More reading: Resources hub
Compliance note
This guide is educational and not investment advice. Do your own research or consult a professional adviser.