GREY:STACF - Post by User
Comment by
dwyomingon Jan 15, 2007 4:26pm
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Post# 12020727
RE: Dilution
RE: Dilution"$500 million cap/130 million shares = $ 3.84 a share."--TG
Here's a little algebra for everyone:
Market Cap (MC) = Share Price (SP) x Outstanding Shares (OS)
MC = SP x OS
This can be re-worked to the following:
SP = MC/OS
with market cap as the numerator and outstanding shares as the denominator.
The trick to building stock price is to increase the market cap faster than the dilution.
In the previous sentence is the great truth of the situation...does PAX have a good chance of increasing the market cap faster than it dilutes it? Yes, I think so in a big way.
--dwyoming