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Author: SpectacularBid Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore)
Number: of 20179
Subject: Re: Why MSPG is a better valur than AOL Date: 1/30/99 6:03 PM
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criscarson wrote in post #2374:

I then recommended Mindspring to him, saying that I thought it was (let the flaming begin) a better value than AOL.Why, you ask? Let the numbers speak for themselves:
MSPG: 1.3 million customers, 26 million shares outstanding
AOL: 15 million customers, post-split 900 million shares outsanding
which translates to;
MSPG=1 customer for every 20 shares,
AOL= 1 customer for every 60 shares.
Which company is building better shareholder value?

criscarson,

It is unclear to me how computing a customer per share ratio shows me that MSPG is building better shareholder value. For example, under your computations, if MSPG declared a 3-for-1 split today, it would have a 1 customer for every 60 shares ratio just like AOL. If MSPG declared a 4-for-1 split today, would that mean that AOL is building better shareholder value?

Reid.

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