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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: snowdog who wrote (94442)	12/9/2007 10:01:17 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 206176

>> I was flabbergasted at the number of shares << Opti Canada has 195 million shares outstanding and a $3 billion market cap. Connacher has 210 million shares outstanding and a $705 million market cap. So what? >> way over diluted << Dilution takes place when the number of shares a company issues grows faster than earnings, diluting the earnings per share for existing shareholders. The absolute number of shares outstanding is less important than how fast they are cranking out new ones relative to the growth in earnings. One of the factors that has held back the share price of Chesapeake Energy (CHK) is that as the earnings and production has grown, they keep issuing more shares. I know very little about Connacher although some over on Taikun 's Oil Sands forum discuss little else. Subject 55547 The business plans of Connacher and Opti Canada are very different so it should be no surprise that with a similar number of shares outstanding the have different market caps.