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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Andrew H who wrote (2747)2/5/1998 4:09:00 PM
From: CO  Read Replies (1) of 27968
 
Andrew, I think the company would be more inclined to use warrants in the first place. Warrants would not effect the eps calculation.

IF they did use restricted shares, they would not be free trading shares and would not be added to the float. The stock price would not be effected nearly as much. The company would then have a year to use the money to acquire and add additional value to the company and then buy back the shares. The end result could be VERY positive.

There are other factors that drive the price of a stock beside just the eps calculation. The law of supply and demand is a very stong force that drives the price of a stock.

Cheryl
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