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Non-Tech : The Children's Beverage Group (TCBG)

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To: Cavalry who wrote (1998)10/20/1998 11:47:00 AM
From: mark cox  Read Replies (1) of 2452
 
Hi Cav, you said,

" ps and the 1 for 8 dividend becomes free trading by may of 99 if you think tcbg trades like a rock now, imagine when the float doubles "

It should also be mentioned what the possibility for revenue and net income growth will be at that time. Compared with their present estimated numbers of almost zero, it shouldn't be too hard to imagine triple and quadruple digit growth next year. Also we don't know how many new retailers TCBG will pick up by then if any. Just because the restricted shares will become free trading doesn't mean that the people who own them are going to sell them either. Plus you are only talking about the "float" increasing, not "shares outstanding" so I hope nobody confuses what you said with dilution of earnings. To a long term investor the float isn't that important. In fact a larger float is better for attracting institutional investors wouldn't you say? Not that they would be very interested in a BB stock. But down the road the larger float will help out with the liquidity for bigger investors.
Your concerns for the larger float sounds like a short term trader talking and not a long term investor.

Mark
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