International Lottery and Totalizator Systems (ITSI) Message Board

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Non-Tech : International Lottery and Totalizator Systems (ITSI)

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To: LEO RISHTY who wrote (86)	6/16/1998 7:20:00 PM
From: Vinnie	Read Replies (1) of 160

Again, I understand what you are stating, but the addition of 9.5 mil shares post split still adds up to a dilution of 158% based on the current outstanding of 6 mil that you quote. That means that the new revenues notwithstanding, current earnings (which are negative) will be diluted and the additional earnings from the lottery deal will be spread out over 15.5 mil shares. Lets also not forget that the reverse split is nothing else but an attempt by management to artificially prop up the sagging stock price. It does nothing for us, the stockholders. Future earnings will increase because of the fewer shares (before the Phillipines buyout anyway) but we'll have only 1/3 as many shares from which to collect those earnings...so there's really no benefit on paper. If the company can show me numbers that clearly indicate this deal will be accretive to earnings over the next couple of years, then I'll applaud them. Right now, after more than 12 months in this stock, I'm a pretty dissolutioned and disappointed stock holder.

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