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ltesprit

10/19/05 8:33 PM

#178057 RE: rickhan #178019

Rickhan and others, you have to understand: The shares o/s is 44 billion. The float (i.e., traded shares held by outsiders) is 21 billion less around 5 billion that are restricted but slowly becoming unrestricted and available to trade.

The most important number is the 44 billion. Why? Think of it this way: if a Wall Street analyst wants to figure out a target price based on P/E, she'll divide the current stock price (P) by the earnings of the company divided by the total numbers of shares outstanding of 44 billion. Not the float.

And if Frank sells the company for, say, $1 billion, that $1 billion gets divided up by the total number of shares outstanding: 44 billion.

You guys getting this now?
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tradewell

10/19/05 9:47 PM

#178126 RE: rickhan #178019

I always said 21 billion did not include frank's 53%. I'm sure most figured all 50 billion shares would be outstanding when the network was done building and starting to generate revenue. That is factored in. It is the vendors payed with shares and selling that is killing the stock price. Frank needs to get the revenue to breakeven in order to stop the restricted shares from hitting the market. Once that is done, the drag will be taken off the market. It is a catch -22 for a startup company. Almost equivalent to an R&D biotech. IMO-TW