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greedy__malone

04/13/09 3:20 PM

#12510 RE: snow #12505

snow any increase is dilutive.

How hard is that to figure out?

Any new shares would require an increase in net profits equal to the percentage of increased share numbers in order for the stock to remain equally valued.

For every new 10% increase in shares there has to be a 10% increase in earnings for the shares to be worth the same as before the increase.

But the issuances of new shares is dilutive regardless of that as the new earnings are now weighted on the new share totals regardless of any increase or decrase in earnings.