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Technology Stocks : America On-Line: will it survive ...?

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To: S. maltophilia who wrote (5655)11/7/1997 10:06:00 PM
From: Art Stone  Read Replies (2) of 13594
 
On AOL's 10K they stated there were 100.7 million shares outstanding.
From newest release:Earnings (loss) per share $ 0.16

Weighted average shares
outstanding 118,880


At the risk of answering a question answered already, when computing EPS, the accountants insist that you take all options, warrants, preferred stock, etc... which might Dilute future earnings (if exercised), and present the EPS number based on a worse case scenario. AOL has a huge number of Director / Officer stock options going down below $10/share, and I believe Sprint is still holding a large chunk of warrants which they can exercise for something like $13/share.

That's my guess.
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