Replies to post #1373 on Globe Photos Inc (fka GBPT)

[jimmyz]

I've seen this before and never asked about it but it always bothered me. Based on the date for the authorized shares, does this mean 2 Billion shares today (post split).

Authorized: 2 billion shares (post split)
outstanding: ~80 million shares (post split)

Is this anything we should be concerned over (anyone)? About 4% of the company is essentially public?

I never felt comfortable about this but after doing a little research here is what I know:

(Positive Side):
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1) I understand google has a disproportionately large ratio of authorized/outstanding shares (but I don't know how much... anyone else?). Yet their stock price almost tripled within a year.

2) Earnings per share are calculated based on outstanding shares not authorized shares.

(Negative Side):
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1) On the negative side, and I am not exactly sure how this works... I believe that insider stock options are exercised based on authorized shares... which can mean stock dilution.

[Whitewolf]

The authorized shares were already in place with the shell company that Medify merged with to go public. In other words, this was not done by Medify's management...rather, they inherited the authorized share amount.

Most companies authorize many more shares than they intend to actually issue. With the potential revenue that Medify is capable of developing over the next few months, I highly doubt that they will dilute what I consider to be an already large O/S share amount...they would only be hurting themselves with such dilution. Typically only a starving company will continue to dilute as they need money. That does not appear to be the case with Medify.

[michaels60]

I think Cosby is actually short on sweaters.