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Technology Stocks : Alphabet Inc. (Google)

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3:03 PM EST

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To: KeepItSimple who wrote (9709)	4/21/2006 3:50:23 PM
From: GVTucker	of 15857

KeepItSimple, RE: There are now more outstanding shares than there were before the offering. The EPS by definition is REDUCED. Google admitted in the SEC filing that the offering will not be factored into EPS until the next quarter. How are you claiming that adding 5 million more shares to the total outstanding is not dilution? What other definition of "dilution" are you using on your planet? I'm sorry, I thought you had a basic understanding of financial analysis. "EPS" is an acronym that stands for "Earnings Per Share". This is a term that is calculated by dividing "earnings" (i.e. net income) by "shares" (i.e. diluted shares outstanding). In regards to the Google secondary, it is accretive, not dilutive, because as a result of the offering, the "earnings" part of the equation increases more than the "shares" part of the equation. Using "basic math", the EPS number increases.

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