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StockCentral :: Community
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Join in on the discussion with other like-minded investors in our community forums. Learn about the fundamental investing methodology and participate in educational workshops in the Investing forums, stay up-to-date on StockCentral news and make suggestions to the StockCentral team in Central Square, and discuss your favorite stock or recent market news in our A-Z ticker-based forums.
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IRA SMILOVITZ
Leonia, NJ
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| 02/15/2008 1:19 PM |
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Whether the sale of additional shares dilutes the EPS or not is entirely
dependent on what XTO does with the cash it raises. Presumably, they have plans
to use the funds to expand their operations. Somewhere in the prospectus they
will disclose what their plans are.
Ira Smilovitz
In a message dated 02/15/08 12:53:36 P.M. Eastern Standard Time,
classroom@stockcentral.com writes:
From the
The Classroom forum at StockCentral.com, Gene Rooks writes:
Our club owns XTO, which just announced the following: XTO
Prices Sale of 20 Million Shares at $55 Apiece. That price is close to
the current price.
To my still learning thought process, it would seem this
will dilute the value of all shares after they are sold, thereby lowering both
EPS and stock price. Is this how to view this announcement, or what am I
overlooking? Gene.
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Posted by: Gene
Rooks
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Gene Rooks
Gotha, FL (W. of Orlando)
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| 02/15/2008 2:01 PM |
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Ira, the press release says to finance acquisitions
and repay debt. Would those uses offset the potential
dilution? And over long or short term? Thanks,
Gene
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Gene Rooks, Director
Space Coast Chapter
Accounting Instructor |
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