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Re: fung_derf post# 1245

Monday, 03/29/2004 10:14:33 PM

Monday, March 29, 2004 10:14:33 PM

Post# of 358440
Nooooo, not all at. I never said a high A/S is good. 500 Billion compared to 5 million is definately not good. But let's take CMKX for example. We "know" there are 500 Billion A/S. Let's say 10%, for demonstration purposes, is outstanding (50 Billion). The 50 Billion is what is in shareholder's hands. These are the shares that have value, as of right now .0002. The remaining 450 Billion do not have value because they haven't been issued. They also are not included in EPS valuation. The whole point in this from the beginning was to explain that a R/S, by definition, not what happens afterwards, does not reduce shareholder value. The unissued shares have nothing to do with what my value, as a shareholder, would be after the "event".

Scot

Edit: P.S.-Also, not only do unissued shares not count towards EPS valuation, shares retired to the Treasury are not as well.


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