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  Explanation and effect of "Shelf Offering of SVA"
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earningswatcher  
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 More options Nov 18 2009, 9:23 am
From: earningswatcher <earningswatc...@gmail.com>
Date: Wed, 18 Nov 2009 06:23:02 -0800 (PST)
Local: Wed, Nov 18 2009 9:23 am
Subject: Explanation and effect of "Shelf Offering of SVA"
Hope this helps!

SVA filed for a "shelf offering" of 10 million shares today. Please do
not confuse with secondary offeing.  Shelf offering is like a stand -
by registration with the SEC of new shares to enable the company to
sell new shares only if the company feels they need to. The shelf
registration is good for 2 years and the company may opt to sell in
portions without re-resigration and risk of penalties.  This is the
intention of SVA based on their disclosure as SVA stated they do not
have the intention to sell the shares now.

I think they filed this maybe because of the fast growth and demand
they are experiencing now.  This is the best way to address their
demands.

However,  looking the other companies who filed for shelf offering
would show that they usually drop because the public thinks their
earning will now be diluted by the new offering.  ABAT fell 10% last
October when when they sold shares pursuant to their shelf offering.

The public usually panics immediately but with the growth potential of
SVA in their next quarters,  10 million shares should not even matter
and should be better for the public as higher number of shares out is
harder to short and manipulate.


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earningswatcher  
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 More options Nov 18 2009, 9:23 am
From: earningswatcher <earningswatc...@gmail.com>
Date: Wed, 18 Nov 2009 06:23:24 -0800 (PST)
Local: Wed, Nov 18 2009 9:23 am
Subject: Explanation and effect of "Shelf Offering of SVA"
Hope this helps!

SVA filed for a "shelf offering" of 10 million shares today. Please do
not confuse with secondary offeing.  Shelf offering is like a stand -
by registration with the SEC of new shares to enable the company to
sell new shares only if the company feels they need to. The shelf
registration is good for 2 years and the company may opt to sell in
portions without re-resigration and risk of penalties.  This is the
intention of SVA based on their disclosure as SVA stated they do not
have the intention to sell the shares now.

I think they filed this maybe because of the fast growth and demand
they are experiencing now.  This is the best way to address their
demands.

However,  looking the other companies who filed for shelf offering
would show that they usually drop because the public thinks their
earning will now be diluted by the new offering.  ABAT fell 10% last
October when when they sold shares pursuant to their shelf offering.

The public usually panics immediately but with the growth potential of
SVA in their next quarters,  10 million shares should not even matter
and should be better for the public as higher number of shares out is
harder to short and manipulate.


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