AFFYMETRIX (AFFX) Message Board

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Biotech / Medical : AFFYMETRIX (AFFX)

AFFX 14.01

0.0%

Apr 1 5:00 PM EST

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To: TEColeman who wrote (541)	10/19/1997 4:41:00 PM
From: Andy Patton	of 1728

What an interesting question! I never thought of the mathematics of it that way. You're right in that the loss per share would be smaller now, but I would think that anyone investing in a company which has never yet made a profit (as opposed to one that has been profitable in the past) wouldn't be looking at the company in this fundamentals -oriented way. (AFFX is obviously not a value play.) I would think that the dilution suggests that the payoff in the long run might be less (each shareholder owns less of the invented technology.) On the other hand, the money is to be used to upgrade production, and therefore (in theory) make AFFX more likely to turn a profit sooner, so... All in all, I think you either have to trust management to be making the best decision in a compex set of circumstances or you don't. I like the dilution at this time for these purposes, but I'm no expert.But: if you don't trust the management, I'd think you shouldn't be holding the stock, no? Best, -Andy Patton

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