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Microcap & Penny Stocks : GGNC - GIC/Global Intertainment Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Mac S. Giballa who wrote (2085)	2/19/1999 5:00:00 PM
From: kmac	Read Replies (2) \| Respond to of 2585

Scott, A little testy today are we? If you have read my most recent posts even you should understand that my point is that if these additional shares are being used to purchase companies or other capital investments that will have a positive effect on our bottom line, then it could very well be a good thing. Any idiot knows that greater issuances with no payback are going to dilute share value. I guess I was making the assumption that people understood that. I'll try to be a little more simplistic for you in going forward. KMAC

To: Mac S. Giballa who wrote (2085)	2/20/1999 9:10:00 PM
From: Mark Chamberlain	Respond to of 2585

Scott You Have the POINT !!!!! Increases in shares outstanding do NOTHING to increase revenues or profits. They simply decrease eps in direct proportion to the number of sgares out. Companies have almost no need to increase shares outstanding as they grow- look at Berkshire Hathaway if you still don't get this point. The reason the number of shares outstanding is highly relevant to GGNC, is that BB companies commonly play this game. Hugely increase the amount of stock outstanding, divert it to insiders, and then sell like crazy into any up move. The last 5 years have seen this type of play repeated over and over again. And its usually companies like GGNC that pump and dump. Tons of fluffy PRs, sudden up action in the stock, then sudden unexplained drops in price. I could not have said it better. Mark