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Technology Stocks : Novellus
NVLS 2.400+2.1%Jul 24 5:00 PM EST

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To: Henry D who wrote (1919)2/25/1999 3:10:00 PM
From: Math Junkie  Read Replies (2) of 3813
 
I don't know exactly how "dilutive" is defined in the financial world. When someone says they are making an offering like this, it means the total number of shares outstanding is being increased by that number of shares. However, the cash on hand is increasing by a corresponding amount, so I don't see how the underlying value per share would change in that situation. I have no doubt that the price per share drops, because many investors have only a very tenuous grasp on the concept of value in the first place. My point is that it is only temporary, because in the long run, value is what counts.
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