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To: Andrew H who wrote (5322)	3/6/1998 3:48:00 PM
From: Double Dipper	Read Replies (1) \| Respond to of 27968

Andrew, I Will be happy to attend your lecture on convertables as well. Please explain how this works so that we all can gain a better understanding of the process. Thanks, Kevin

To: Andrew H who wrote (5322)	3/6/1998 4:15:00 PM
From: LFISKY	Read Replies (1) \| Respond to of 27968

"Dilution shows a reduction in EPS resulting from securities having been converted, options or warrants exercised, or other shares issued under conditions that would reduce EPS. Securities that have the potential for diluting EPS include convertible securities such as bonds and preferred stock, stock options, warrants, contingent shares,etc. These enable the holder to become a common shareholder ( this is the key) by exchanging or converting the security. Dilutive securities are considered one step short of common stock because their value is related directly to it. Therefore common stock equivalents are included in figuring primary EPS. So you essentially divided net income (minus dividends) by common stock and equivalents. Generally if the holder can, at his or discretion , bring about an increase in the number of common stock outstanding then what you have is a common stock equivalent. A convertible security is considered a CSE based on effective yield comparisons."( something we don't want to get into here.) Sorry for the textbook answer, but this is the gest of the whole preferred dilution issue. I think that everyone is getting way ahead of ourselves on this one. I am glad the weekend is here so we can all digest what has transpired this week. In my own personal opinion , I am satisfied with the research I have done and the information the company has forwarded. I feel extremely comfortable right now with my current and future investment in this stock. Thanks to all who have helped educate me on this one.