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Technology Stocks : NASI (North American Scientific, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Martin Savitska who wrote (534)	6/22/1998 2:18:00 AM
From: dfloydr	Read Replies (1) \| Respond to of 658

This just means that the company has authorized more shares. How those shares are used determines whether there is any dilution. They could just sit tight and do nothing, in which case - no dilution. They could do a stock split. Say they issued each shareholder one share for each one the shareholder now holds - no dilution but each share would then sell for half the price. The Company would then have twice as many shares outstanding. That means a much bigger float (outstanding shares available to be owned) which means there is more room for larger investors. They could give 30 million shares to management as bonuses ... major dilution. They could sell X million shares to the public. There would be some dilution but the amount of dilution would depend on the price and what they do with the money. About eighteen months ago THRX sold some stock which scared investors and the price went down. They then were able to sew up their deal with J&J and order all their new cyclotrons which have allowed them to grow like crazy. The old shareholders were diluted but the result is that they each own a smaller piece of a much bigger pie. This does not always work out so nicely. Managements are not always that successful. Floyd