As per offical accounting rules, SOLP had to report fully diluted EPS using what's called the "Treasury Stock Method" (TSM) to calculate the full shares outstanding. The TSM is a very confusing algorithm, but is the required for accounting for share equivalents. SOLP is not the only company effected by this; many small companies with substantial warrant dilution are required to use this method even if the warrants/options are "out of the money". The GOOD NEWS is that this accounting rule is essentially being repealed effective December 15th, 1997 meaning for the 1st qtr ended December, 1997, SOLP will report earnings on a more simplified "Primary" and "Fully Diluted" EPS basis.
While I don't know him persoanlly, I know OF the elder Mr. Solomon who was a well respected senior executive for major retailers before starting SOLP.
Concering the Oakmont thing, yes, it's like skeletons in the closet, so perhaps, IMO, the best thing to do is get a listing on the AMEX (which they currently qualify for, I believe)which may distance themselve from the occassionally nasty OTC market.
Bill |
