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To: JOHN SAMSEL who wrote (471)	5/10/1998 5:23:00 PM
From: Ahda	Respond to of 747

If a company makes a claim of 0.12 earnings per share and then does a 2 for 3 reverse split , I figure that the EPS should not be 0.18 The shares should be .18 as you have less shares out than before so the value is higher. But if the same company then does some equity financing and increases the outstanding shares again, we lose the EPS advantage of the reverse split. Does that sound correct to you? Yes but no. How do you grow without finances? You have to offer something to get financing. When you are a proven company you can go to the bank get a revolving loan when you aren't proven you are high risk and have to offer incentive in order to get loans. This may sound like a dumb question, but is there a way the company can do equity financing without increasing the shares outstanding? I am sure there is if they own something worth a great deal. This is new technology however at this point if they needs funds they have to offer something and if they can get funding you know darn well pending on terms of financing that they do have something with potential..