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Technology Stocks : Jabil Circuit (JBL)
JBL 197.06+0.2%3:59 PM EST

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To: prakash who wrote (3005)3/12/1998 10:58:00 PM
From: AlienTech  Read Replies (1) of 6317
 
>>That's exactly what I was worried about, increase in the number of shares and hence dilution. But I don't think that the number of shares have increased looking from their recent 10Q.<<

You have to read the fine print. You see a company has a certain number of shares authorised. Eg CPQ has like 3 billion but only less than a billion outstanding (I think) The rest are resrved for stock splits and employee stock options etc etc. All the info is there if you know what to look for. But one thing happens when the employee stock options vest, IF THE EXCERCISE PRICE OF THE OPTIONS IS LESS THAN THE CURRENT STOCK PRICE you have to include that in the EPS calculations. Other wise you dont ie is the stock price of JBIL is 30 when they report and the option excercise price is 35 heck they will just blow their numbers out of the water. But if the stock price is 40 and the option price is 35 then they are in trouble.
The rapid drop in price and strength of the stock makes complete sence now.
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