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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: gregor who wrote (1096)1/21/2010 9:01:02 AM
From: bruwin  Respond to of 4720
 
I don't know how Spekulatius will reply, but my take on dilution of shares and stock splits are ...

Stock dilution is a general term that results from the issue of additional common shares by a company. This increase in common shares of a stock can result from a secondary market offering, employees exercising stock options, or by conversion of convertible bonds, preferred shares or warrants into stock.

And ...

A stock split or stock divide increases the number of shares in a public company. The price is adjusted such that the market capitalization of the company remains the same after the split, so that dilution does not occur. Options and warrants are included.



To: gregor who wrote (1096)1/21/2010 9:58:01 AM
From: Spekulatius  Respond to of 4720
 
re BRK/BNI - the deal is in cash and/or in shares. Shareholders have a choice the mix of cash/stock is net set, it's up the BNI shareholders.
Regardless of how this deal is paid for, the fact remains that he paid a very steep price for BNI judging by conventional metrics.