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To: Pullin-GS who wrote (28504)	10/1/1999 12:14:00 PM
From: Eric L	Read Replies (1) \| Respond to of 77400

<< PE just doubled >> ?????? - Eric -

To: Pullin-GS who wrote (28504)	10/1/1999 2:32:00 PM
From: Gerald Walls	Respond to of 77400

Eh? Increasing the # of authorized shares causes dilution? I don't think so. It does absolutely nothing. It's not even an accounting entry. Absolutly nothing? Thats silly. Hmmmm....lets see.....the PE just doubled. Absolutely, 100% incorrect. This is as foolish as those who believe that by buying the day of a stock split that they're getting the shares half price. Increasing the number of shares is dilutive. Increasing the number of authorized* shares* is not dilutive. It does allow actions that are dilutive, such as issuing new stock, but it also allows non-dilutive activities such as a stock split. If a company has 5,000,000 shares out and 7,000,000 authorized, they can't split 2:1 because they'd have 10,000,000 shares, 3,000,000 over authorized. Let's say the company makes $5,000,000. If the company then gets approval to double the number of authorized shares the $1/share profit is still $1/share, because the shares out stays at $5,000,000 even though the board is authorized to have up to 14,000,000 shares out. No dilution. When the split occurs everyone with 500 shares, representing $500 in profits and 0.1% control, will now have 1000 shares, representing $500 in profits and 0.1% control. Again, no dilution.

To: Pullin-GS who wrote (28504)	10/1/1999 3:15:00 PM
From: RetiredNow	Respond to of 77400

Pullin, increasing the number of AUTHORIZED shares is a non event. From your post, it is clear to me you are thinking about a stock split, which increases the number of OUTSTANDING shares. However, as a CPA, I can say your understanding of the mechanics of both increasing AUTHORIZED and OUTSTANDING shares is somewhat flawed. Why don't you go back and do a little reading and then we can talk. I mean come on. You think that increasing authorized shares increases the PE of a company? That's ludicrous. Also, everyone know that buying a company with outstanding shares is only dilutive if the company is not accretive to the financials (which means you made a bad buy). Increasing authorized shares is NEVER dilutive.

To: Pullin-GS who wrote (28504)	10/1/1999 8:20:00 PM
From: Techplayer	Read Replies (1) \| Respond to of 77400

pullin, Re: "Investing in hope is a quick ticket to the poor house. Causes one to overlook the obvious sometimes" Overlooking the obvious is what you are doing. Authorizing additional shares is a common practice by all companies. They are needed for stock splits and acquisitions. Until there is a stock split or acquisition, the number of authorized shares is not the number used for accounting purposes as they are not assigned to any owner or for any purpose. They are there for future use only. Brian