Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Mike Buckley who wrote (52978)	11/8/2002 7:42:23 PM
From: Stock Farmer	Read Replies (1) \| Respond to of 54805

I'd also like to know why stock options are anti-dilutive in years when there is a loss in GAAP earnings. Because any increase in stock price DECREASES the loss per share, which is considered anti-dilutive. Solely from the perspective of computing EPS. Example: Company with 100 shares has a loss of ($100) or ($1.00) per share. 10 stock options outstanding (price irrelevant). If these 10 options were exercised, the loss would be ($100)/110 = ($0.91) per share. Since this is a LOWER loss per share, it represents a HIGHER income and is considered anti-dilutive. The word "dilutive" has several colloquial meanings. Sort of like the word Pants. Which means a different thing in English than it does in English. John