The accounting rule, as I understand it, says that dilution must be taken into account if it reduces eps by some percentage. Since there is a loss, dilution does not have to be reported.
OK I think I understand now. You always must report basic EPS and fully diluted EPS(if diferent). But since when you have a loss, the inclusion in the denominator of any aditional shares would increase, not decrease, the EPS, they are considered to be Antidilutive, and are therefore not used in the EPS calculation.
So everything about the debs is the same, nothing has changed. Sorry if I confused anyone.
Now whats holding this dude up? What would have happened if they had lost 78 cents, a rally? Are there any bulls who were not suprised by this loss? After seeing the earnings report are you holding, buying, selling or crying?
Jon Bird |
