Value Microcaps Motherboard

[abh3vt]

Koz, the level of dilution has nothing to do with revenues. Its all about earnings per share, which is impacted by

a) the rise in net income and
b) the change in fully diluted shares.

The fd share count is calculated using the treasury stock method. If you haven't heard of that, I highly recommend that you look it up. Its a fairly complex calculation that looks at all "stock-equivalents" like warrants, options, and convertible securities.

Generally, if a stock's fd eps shows y/y growth, even with a rise in the fd share count, we can say that shareholders have not suffered from the increase in shares. Of course, shareholder value can be measured in a number of different ways, so no one measure of dilution fits all answers to this question.