Seven Arts Entertainment Inc (SAPX)

[sbc357]

Regardless of whether or not it goes into the float, it still increases the OS count. The increase in OS count is what DILUTES our shares' VALUE.
Every time our OS goes up, the per share VALUE goes down. Float means nothing when valuing the stock, such as earnings per share, book value per share, PE, PE multiples, revenues per share, etc., etc.
Those valuations are what REAL investors look at as to whether or not to buy in because it is underVALUED or Fair Valued. The more they dilute the value, the closer the VALUE of .30/shares becomes FAIR VALUED.
That is why we need to play close attention to all this DILUTION and not understate its impact on share valuations.