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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Jill who wrote (3702)7/13/1999 12:46:00 AM
From: JRH  Read Replies (2) of 54805
 
Jill, Frank and Thread:

I understand it could be seen as dilutive, but I think there's a strong possibility they'll have great earnings

Maybe I am missing something here, but when has dilutive ever been good for the shareholders, even if it is only dilutive by a meager 3%? I am going to have to stand by my Uncle Frank on this one and am eager to hear their response.

nd that along with S&P might cause a feeding frenzy, so they are preparing.

Why do they need to issue more stock for a feeding frenzy to occur? If a frenzy is to occur, I would imagine that the stock would rise more with fewer shares outstanding! If they want more shares out there, they can split the stock. And the $600 million (or whatever) in cash that this potentially produces isn't enough to make any major purchases.

BWDIK,
Justin

BTW: NTAP did have a secondary offering, but it was before they were added to the S&P 500. Downsouth, are you out there? Do you remember how the stock reacted to the offering? Thanks...
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