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Strategies & Market Trends : Roger's 1997 Short Picks

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To: nonzeroa who wrote (4936)8/25/1997 10:22:00 PM
From: hasbeen101   of 9285
 
nonzeroa, you're right that issuing new shares dilutes the existing shareholders' wealth. I think many on this thread would agree that there isn't much to dilute at this stage, so the net effect of this deal is to make existing DDIM shares more valuable (perhaps the underlying value has risen from $5 to $6).

The EPS forecast I saw of $16 just seems insane, doesn't it? I think the hype will get greater before diminishing. If I was short DDIM right now, my main concern would be that someone might be rich enough and stupid enough to take it over at a premium (don't let Sondo know I said that!) Stranger things have happened....
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