Zeev and Larry,
You are laboring under the illusion that the convertible preferred shares are not included in the common share count. Actually convertible shares that are in the money, must be included in the common share count, as well as in-the-money warrants and options.
Here is a recent statement from another company (I own some of their stock), who recently called some convertible bonds:
NIWOT, Colo., Feb. 19 /PRNewswire/ -- The Dii Group, Inc. (Nasdaq: DIIG - news), a leading value-added electronics design and
manufacturing service provider, today announced that $86.2 million of 6% convertible subordinated notes due October 15, 2002, were converted to 4.6 million shares of common stock. ...
Thomas J. Smach, chief financial officer, said, ''With this conversion, our debt-to-total-capital ratio drops to about 50 percent. Given the strong cash generation of our businesses, that leaves significant access to the public and private capital markets.''
Smach added, ''Some investors mistakenly think that the conversion will dilute our earnings per share. That's not the case since the effect of the conversion has always been included in the calculation.''
biz.yahoo.com
You've got a couple of other things seriously wrong. I will address in the next post.
Paul
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