The numbers & accusations reported on this board are far too complex for my simple mind. There is nothing deceptive going on with the executive shares, as I’ll prove. They are not buying, selling, or dumping shares. The following simple math agrees with the publicly reported outstanding shares and the 600 MM dilution that boosted the 800 MM shares to 1,400 MM shares. (MM = Million).
1) Fundamental Facts: 373.2 MM outstanding shares that we’ve been staring at for 3 years
2) Insider shares: 5.9% for three years (based on the above 373.2 MM shares)
3) Executive shares(2): Adams 14.5 MM, Polsky 7.550 MM totaling 22.050 MM shares reported at the end of several recent PRs. The number of executive shares apparently hasn’t changed for 3 years.
4) May 17 (2013) PR: Adams 1.81 %, Polsky 0.94% totaling 2.75% effect of dilution and float
Now for my twisted logic:
Three years ago: Compute 22.050 MM shares / 373.2 MM outstanding = 5.91 %.
This agrees with the 5.9% in fact #2 above. The executives owned 5+% based on 373.2 MM float.
After dilution of 600 MM shares reported on May 17:
22.050 MM shares / 800 MM shares = 2.756 % matches the recently reported executive shares in fact #4 above.
Simple dilution.
Now, why did I use 800 MM as the current float. The Chinese investment only required part of the 600 MM additional shares, and the remainder went into the Treasury for future use for employee incentives and/or generating more leverage as required by the MDHI Board.
Regardless of the Chinese proportion of the shares, none of the 600 MM shares are currently in the float. The simple math above proves that point. Treasury and restricted funds are not counted in the Outstanding Shares. The Chinese shares are restricted until 2014, however, there are no such restrictions on Treasury funds. For the most recent May 17 report, 800 MM appears to be simply correct. We’ll see the exact numbers in the 2013 Annual Fiscal report.
