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To: Perspective who wrote (30629)	10/24/2000 10:12:17 AM
From: LLCF	Respond to of 436258

< Is the dilution of the remaining income sufficient penalty for my stupid action? Clearly not.> Why? What do you expect, Moses to hit them over the head with a stone tablet? <Income statements are a way of charting changes in shareholder equity over time. > Yes, over time if the money was pissed away there will be no new income to make up for the dilution. I see no reason that a capital account transaction should hit the income side right away. If they spent the money on equipment, it would hit it 'over time' right? <Determining whether dilution or accretion is taking place is therefore virtually impossible, since the relative valuations are clearly a matter of opinion.> Sounds like we agree... it's just the timing. dAK

To: Perspective who wrote (30629)	10/24/2000 1:05:01 PM
From: GraceZ	Read Replies (1) \| Respond to of 436258

. Is the dilution of the remaining income sufficient penalty for my stupid action? Clearly not. Dilution alone is not an adequate accounting of the management error. You can look at tech company after tech company where companies that were acquired contained technology and patents that then took over as the major profit driver in the acquiring company. This is how big companies augment their R&D. Do they make mistakes and over pay? Of course they do. The income statement should be impacted as well. Income statements are a way of charting changes in shareholder equity over time. You are confusing the income statement with the balance sheet here.