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To: Chuzzlewit who wrote (137817)	7/27/1999 1:01:00 PM
From: stock bull	Read Replies (1) \| Respond to of 176387

Chuzzlewit, many thanks for your response. Re:<< No, the additional 4 MM shares will dilute current shareholders. Let's take a simple example. Suppose you hold 1 share in a company that has issued 10 shares. Your stake is 10%. Now suppose the company plans on issuing an additional 10 shares. After issuance of the shares your stake will be reduced to 5%.>> I fully understand this example. Re:<<The ultimate sale of restricted shares does not dilute ownership, but it does add to the float.>> Not sure I understand this part of your response. The "ownership" comment seems to be in conflict with the first part of your response. By the float, I assume you are referring to the number of shares outstanding. Does the 4 million added shares "dilute" the eps ratio? I would think it would. If it does, do the analysts adjust their eps forecasts to account for the new shares? Again, thanks for you help. Stock Bull