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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 236.73-6.1%Jan 30 9:30 AM EST

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To: Dan3 who wrote (228283)3/18/2007 11:23:53 PM
From: TenchusatsuRead Replies (1) of 275872
 
Dan, > If a company with $5 Billion in assets issues $5 Billion in stock to pay for an additional $5 Billion in assets, each stock share continues to "own" the same value in assets.

But then each stock share represents a lower portion of the earnings.

Which is fine if a doubling of assets leads to a doubling of earnings, but that's highly in doubt with AMD these days.

Tenchusatsu
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