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Microcap & Penny Stocks : MSHE (MSH Entertainment) -- Ignore unavailable to you. Want to Upgrade?

To: recycle who wrote (1319)	7/1/1998 2:01:00 PM
From: Sisofsix2	Read Replies (1) \| Respond to of 2706

Hello, Recycle; Here is a discussion of stock dilution we had a few months ago on AOL: >>Subject: Question to CPA's, etc Date: 4/21/98 6:38 AM Central Daylight Time From: Sisofsix2 Message-id: <1998042111383200.HAA10864@ladder03.news.aol.com> Recently, Gregerrrrr posted this: <<Once again we have no details of such a large business deal. It seems very big anyway, but who really knows. It would be interesting to know how much of our cash was utilized and if this is another instance of dilution to our stock that means that the profits are cut even more.>> If MSHE were to issue more stock to raise capital for projects presently "in the works" at MSHE, there would be a dilution of all stock held by the company.............But, if the issuance of more stock was for acquisitions of viable companies, like AGE, that are proven performers in the industry that compliment the workings of MSHE, would the issuance of more stock be pretty much a trade off with "NO Dilution" to the company, therefore, strengthening the company's stock and it's position for future revenue production? Subject: Re: Question to CPA's, etc Date: 4/21/98 8:23 AM Central Daylight Time From: Livalytl Message-id: <1998042113230600.JAA17878@ladder01.news.aol.com> While a theoretically sound argument could be made on the side of more stock more dilution, the notion of dilution is not terribly relevant to a company which does not yet report earnings...in other words "dilute what"? As such while in the long run there would be more shares outstanding (and thus could have a long term dilutive effect), the shorter term impact would help MSHE to achieve the listing and reporting status that we all want to see and, if the deal is structured appropriately and AGE is profitable this could have an accretive effect pushing the stock price higher even in the long run. So for now without any further information on the deal or the accounting treatment of a partial merger with AGE it is almost impossible to predict the long term effects other than to believe that they are probably favorable (why else would they do it?).<< Any comments welcome! SIS