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Biotech / Medical : Monsanto Co.
MTC 2.305+9.2%Nov 21 9:30 AM EST

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To: Dan Spillane who wrote (508)11/11/1998 7:09:00 PM
From: nickscores  Read Replies (1) of 2539
 
I agree. However, I am concerned that the street will view the issuance of new stock as dilutive to earnings and we may have more short term price pressure. I hope not, but. Most people will consider that to raise $1billion from the sale of stock, Monsanto will have to issue about 25 million shares - they will view that as negative and stop there. However, 25 million shares is just a drop in the bucket of 600 million shares currently outstanding. In fact, 25 million shares represents only a 4% increase in total shares issued - hardly enough to be considered dilutive. Still, who knows how people will react to the news. It wasn't rational to punish Monsanto for the failed AHP merger, so......
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