ACII - AmeriChip International, Inc. Message Board

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Technology Stocks : ACII - AmeriChip International, Inc.

ACII 25.24

-0.2%

Nov 6 3:34 PM EST

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To: ciajim who wrote (4425)	8/3/2007 12:52:40 PM
From: rushlong	Read Replies (1) of 4616

Caijim, your analysis has so many mistakes & assumptions its hard to decide where to begin. First of all you talk about a share holder's "stake in the company" as being percentage of shares owned divided by total shares authorized. This is a very slippery idea you present as fact. This is because a company alsost NEVER issues the full number of shares authorized. They may never issue more then half. A much more true estimate is shares owned divided by share issued and outstanding which of course can change. You don't ever hear your term, your stake in the company esp. as you defined it because there are so many problems with it. How can an "investor" say it doesn't matter that the shares haven't been issued yet when we don't know if/when they will ever be issued or what the purpose and how well or poorly the dollars will be utilized. Saying it doesn't matter that the share price adjusted up is the same as your share count adjusted down is equally absurd. BUT your weakest point by far is the statement, you now own a smaller percentage of the company & a smaller piece of any future profits. The situation, R/S and keeping the authorized shares at one billion is much more complicated. Even using your own numbers would you rather as you say have a stake of one percent in a company with 10 million in profits or a .143 percent stake in a co with 200 million in profits? you do the math. Thats the great flaw in your logic. The R/S with higher PPS may create more investor interest esp. by high worth inds. and mutuals funds etc which would raise the PPS. more. BUT more importantly the company by keeping the authorized at one billion will have much more shares at higher prices as resources. Thats the big difference. IF YOU BELIEVE MANAGEMENT WILL USE THESE SHARES PRUDENTLY/WISELY THEY CAN MAKE ACQUISITIONS, JOINT VENTURES ETC. If the co uses these resources skillfully a whole new world opens up and they can grow OUR company much faster and bigger then without the R/S. So for me by far the biggest issue is how much faith do I have in management using resources wisely.

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