Seven Arts Entertainment Inc (SAPX)

[sbc357]

WHAT!!!!

The O/S going up doesn't necessarily mean dilution.

That is the definition of dulution. The value of investors' shares, PE multiples, earnings/share, revs/share and all other valuations are BASED ON THE OS number. If you add shares to the OS count, regardless of whether or not they go into the float, those increased shares take down, OR DILUTE, the VALUE of current shareholders' shares. THAT IS DILUTION.

Just because overly optimistic people want to redefine "dilution", it does not make their statements anything near the truth.
Saying

The O/S going up doesnt necessarily mean dilution.

is utter nonsense.
Traders can very appropriately discuss the float with respect ot how big or small it is having an effect on how rapidly and how far the share price can move. However, that in no way is the same as discussing dilution which is a discussion of the effects of the company's managment of share structure and its effects on VALUATIONS .
Remember, a company's valuations are discussed with respect to x earnings per share or x revenues per share on "a fully diluted basis", meaning counting all the shares in the OUTSTANDING SHARE COUNT, not the float.
These metrics are a major fundamental that attracts or deters investors from buying the stock. Thus it affects the demand side of the supply/demand relationship, which is a huge factor affecting the share price.