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11/01/10 1:45 PM

#3059 RE: JJM760 #3058

You guys all understand how dilution and market-capitalization is correlated, correct?
I apologize very much if you do - just had to ask because a lot of foolish people who think they know the stock market, do not.

I'm sure a lot of people who own Ariad are saying to themselves, "It's only $3.70!!!" yet, with each dilution, the market capitalization goes up, if the stock remains the same.

Essentially, at 70 million shares (where we were 18 months ago, i believe), and a $460 million mkt cap (where we are today), ARIA stock would be ~$6.50. Today, at $460 million mkt cap, the diluted mess is $3.68.

These dilutions hurt any way you cut it. If Bernanke's pump and dump implodes, values of biotech are going to get killed. And it won't bode well for a diluted pig like this.