*AV*--Just an interesting thought about the BMY run up today. They own in the neighborhood of 1 million shares of stock. At the high today, that stock increased in value to the tune of $70 million and ended the day up close to $40 million dollars.
Correct me if I am wrong Scott, but that unrealized or realized appreciation would be found on the ASSET side of the financials under Cash, cash equivalents or short term investments. Either way, it should drop to the bottom line handsomely for the next quarterly earnings. This value should also drop, intact, to the Liabilities portion of the financials as an increase in shareholder equity.
With 1 billion shares outstanding, a $40 million gain in share appreciation translates to 4 cents per share. If we multiply that by the trailing PE of 33.5, we get an equivalent price run up today, (portion attributed to the ENMD run up) of $1.34, which is $2 less than the share price incease today. So, BMY went up $2 on its own and $1.34 based on its investment in ENMD.
Andrew |
