Jonathan,
I asked Ira 3 weeks ago how many shares were outstanding. He said 35,000,000. I asked PFM last week how many shares were outstanding. They said 36,000,000. I would not necessarily conclude that FAMH is continually issuing new shares since the number of shares appears to have gone up 1M in 2 weeks. For example, 35.5M shares could be stated in an informal telephone call as 35M or 36M.
Restricted shares are still "outstanding" and are included in the EPS calculations. They just cannot be publicly traded at the moment, and are therefore not in the float.
Even with a lot of shares issued, FAMH will still see a nice increase in EPS from 1997 to 1998. This, included with the HUGE increase in total sales, will allow FAMH to trade at a higher P/E ratio, IMO.
FAMH is so undervalued even with 40,000,000 shares outstanding (in 1998), that it is still a strong buy!
-Dave |
