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Re: Zen_Audio post# 4304

Tuesday, 02/13/2007 10:06:31 PM

Tuesday, February 13, 2007 10:06:31 PM

Post# of 9101
As I see it Zen, it doesn't matter whether the float has been increased yet or not. The market has discounted the dilution into the purchase price of existing shares. Now the 6.2 million shares will likely come from the uncommitted outstanding that are shown in shortsqueeze:

Total Shares - Float 49,239,000
Total Shares - Outstanding 56,850,634

They might also increase the maximum available outstanding shares filed through their state of incorporation, or through a stock repurchase program (very unlikely). In any event, the buy side of the market is aware of and has priced into the shares an additional 6.2 million shares of dilution, regardless of where the actual shares now rest. I think the evidence of this is how easily the GE spike was wiped out.
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