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Biotech / Medical : AFFYMETRIX (AFFX) -- Ignore unavailable to you. Want to Upgrade?

To: gerald tseng who wrote (634)3/10/1998 8:08:00 PM
From: Michael McVey Lusk  Respond to of 1728
 
Well, it's still a share dilution, only it's delayed. I guess it was necessary though - for the past couple of quarters, cash burn has been accellerating quite a bit faster than revenues.

This action bespeaks a management that's highly confident of large future revenues, or highly scared the competition will get there first.

By the way, last week's issue of the Economist magazine features an article on new trends in the pharmaceautical industry, including a thumbnail sketch of Genechip technology.

- MML



To: gerald tseng who wrote (634)3/10/1998 8:30:00 PM
From: Richard Haugland  Read Replies (1) | Respond to of 1728
 
. They were able to raise the capital they need without flooding the market with new shares which will depress the share price.

My understanding of convertibles is that they DO dilute the shares EPS in the calculation (earnings are reported both before and after dilution now). Of course zero net income divided by a bigger number of shares does not influence investors too much. However, when AFFX does make money it will be dilutive.


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