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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Gary Wisdom who wrote (44043)	1/20/1998 12:35:00 AM
From: slipnsip	Read Replies (1) \| Respond to of 58324

I will respond to you, because you are somewhat arrogant and I believe, that there is a high probability you are incorrect. Because you make a statement with conviction does not make it correct. Because you try to demean anyone that questions your commentary does not make it correct. Yes I know, it is not correct to begin sentences with because. <Uh-oh, here I go again. Try this: Iomega has 100 shares outstanding at $12 each. That's a market cap of $1200. Assuming they never spent a dime and have no assets, shareholder's equity is $1200. Each share is worth exactly $12. Now, Dr. Iomega exercises options to buy 100 shares of authorized, but not issued, shares @ $12. That's additional paid in capital of $1200. Now, there's $2400 of shareholder's equity. And 200 shares issued. Per share value is now $12, exactly what it was before. How is that dilutive?> I will tell you how it is dillutive. Before Dr. Iomega's options were exercised, there were only 100 shares outstanding. Thus whoever held those shares was entitled to 100% of the companies earnings. When Dr. Iomega's options were exercised and the 100 unissued shares became issued and outstanding, the original shareholders claim to earnings was cut in half. Thus you would expect to see a 50% depreciation in the stock price (Ceterus paribus). I believe your logic while appearing to make sense on the second half of your explanation is fundamentally flawed (as is most of my spellings). But as a humble person who does not know everything I reserve the right to be wrong. I strongly believe your confusing market valuation with book value.

To: Gary Wisdom who wrote (44043)	1/20/1998 12:37:00 AM
From: W. Frank	Respond to of 58324

Add one share to the shares outstanding and you reduce (dilute) the earnings per share. That's why accounting standards now require at least a footnote to indicate the dilution (reduction in eps) that will be caused by stock options. Bill

To: Gary Wisdom who wrote (44043)	1/20/1998 12:47:00 AM
From: FuzzFace	Respond to of 58324

All: Now that you can see all replies to a post, keep your eye on Rocky's last post to "Rocky's Personal Iomega Thread": 207.183.153.23 Since many of us will only reply to him on that thread, and since he now seems to have caught on, he won't post there. So, in a few months, his last post there will have so many replies built up, it will surely be the number one most replied to post in all SI. It'll be like stuffing students into a Volkswagon. So be a part of history. Reply to the above Rocky post whenever possible, and relieve the crush on the main thread. If nothing else, it will help you improve cutting and pasting links into your posts. In no way should you construe this as encouragement to harass the Rock. Posts should only be made if you were going to anyway. But by doing it this way, we can help keep our thread neat and clean. So add the post to your bookmarks, or whatever method you use to keep it handy, and let's go for the gold!

To: Gary Wisdom who wrote (44043)	1/20/1998 1:54:00 AM
From: slipnsip	Read Replies (3) \| Respond to of 58324

<It doesn't matter where the share comes from. If they pay the same price that is the market price, it doesn't matter.> Authorized but unissued shares are not figured into the EPS calculation. Treasury and outstanding shares are. Your statment is innaccurate.

To: Gary Wisdom who wrote (44043)	1/20/1998 1:59:00 PM
From: stock bull	Read Replies (1) \| Respond to of 58324

In an attempt to help with the definition of "dilution", I went to a book that I have. The name of the book is: Wall Street Words. Here's the definition: Dilution..."A decrease in the equity position of a share of stock because of the issuance of additional shares. Dilution is normally detrimental to the position of existing sharehholders because it weakens their proportional claim on earnings and assets." Potential Dilution..."The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. This term generally refers to outstanding options and convertible securities likely to be exchanged for shares of common stock at a future time." I hope the above helps in resolving the meaning of dilution. Stock Bull