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To: Darth Trader who wrote (48490)2/22/1998 8:44:00 PM
From: philipah  Respond to of 186894
 
Darth:

Issuing more shares to existing shareholders
by way of splits is not a dilutive event.

Adjusted earnings per share are unchanged in that scenario.

Best regards



To: Darth Trader who wrote (48490)2/22/1998 8:47:00 PM
From: Paul Engel  Respond to of 186894
 
Darth - Re: " Shareholders should be concerned with dilution of shareholder wealth by the company issuing more shares. "

News Flash - Stock splits are NOT DILUTIVE!

Paul



To: Darth Trader who wrote (48490)2/23/1998 6:02:00 AM
From: steve thompson  Read Replies (1) | Respond to of 186894
 
Darth,

RE:"The "number of share authorized to be issued" has nothing to do with stock splits. Shareholders should be concerned with dilution of shareholder wealth by issuing more shares."

I agree and disagree. The number of shares authorized does put an upper limit on the number they can authorize without further shareholder approval.

But I also agree 100% with your statement regarding the dilution of shares. This really concerns me but I don't know if it should. But what is a company like INTC going to do here. As the price for the stock goes higher and higher, does it discourage the "small"investor to buy those 100 share blocks. I think it does,at least psychologically. But take a look at Berkshire Hathaways. The last time I looked that stock was $53,100 per share. Earnings growth keeps powering it further and further. The fact that the stock hasn't split doesn't seem to have hurt it.

Any thoughts here?

Steve