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Microcap & Penny Stocks : ABFG - AMERICAN BENEFITS GROUP, INC. -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Chisholm who wrote (4072)	7/7/1999 9:28:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 4128

Dilution of shareholder value occurs only when the value of the shares issued exceeds the value of the assets acquired. Conversely, "accretion" of shareholder value occurs when the value of the acquired asset exceeds that of the issued shares. true Daniel. But in this instance which way would you bet?

To: Daniel Chisholm who wrote (4072)	7/7/1999 9:44:00 AM
From: Jeffrey S. Mitchell	Read Replies (1) \| Respond to of 4128

Daniel, since April there have been 21 million common shares added. That's an astounding 72%! Since that same time, there has only been one announced acquisition, which was for $4 million, $3.5M of which was in stock. Assuming the worse case scenario, and the stock given had a value of only .50, then that would mean the total number of shares given was 7 million. That leaves 14 million unaccounted for! Worse, if we assume the dilution did come from the acquisition, it meant the restriction on that stock was only about 45 days (recall the deal was struck in mid-May)! Pick your poison: outrageously short lockup period or non-acquisition based dilution. - Jeff