Replies to post #79069 on 8000 Incorporated (EIGH)

[Fire Lane]

its not 1.5 million shares, its 1.5 million DOLLARS worth of shares. Probably at a substantial discount to market, but lets just say its at market that would be 25 MILLION shares of dilution

[loanranger]

tj,
The simplest questions are always the best.
Someone else has pointed out that it is 1.5m dollars, not shares ("As part of its investment strategy, 8000inc will provide through restricted stock the first traunch in the initial $1.5M working capital").

Restricted shares could be issued from the 500,000+ authorized shares that (we think) have yet to be issued. Obviously this would add to the outstanding share number, diluting the EPS number (of course, that's if they have an E). It wouldn't add to the float, though.

To sum up, if there were an equal number of restricted shares issued as there were shares bought back, EPS would stay the same but the float would be reduced. I think that you would find that most investors would consider the net effect on the share value to be zero, except for the added risk of buying shares back at an unknown future price.

Meanwhile the "windfall" lies fallow. Right.