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Microcap & Penny Stocks : American International Industries Inc. OTC BB Symbol EDII -- Ignore unavailable to you. Want to Upgrade?


To: Janice Shell who wrote (52)7/9/1998 7:40:00 PM
From: jmt  Read Replies (2) | Respond to of 4814
 
>> I can understand why it's neither dilutive nor accretive to the individual current shareholder, but in the end, on 31 August there'll be ten percent more shares outstanding than there are now, right? And that's dilution, in the general sense.<<<

Dillution occurs when your share of earnings has diminished. In this case the earnings per share is lower, but that is offset by the fact that you own more shares (received at no cost). And technically, since all shareholders are current shareholders (all 80 Million of us), we all share equally. So while the stock price should be 10% lower, we all own 10% more shares.

Now to your point, to do another acquisition for some fixed value, it will cost 10% more shares. but we have been compensated for this already.

Just another thought. The only reason anyone would put out a number of meaningless press releases is to hope they support the stock while affiliated parties sell into the release. I wonder if Dror is doing this for Christansen??

jmt