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Author: Connertown Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 20  
Subject: Re: recent news Date: 3/15/2000 11:20 PM
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I'm not following the reasoning on this.

If HAKI is issuing new shares, then I understand that there are more shares out there to dilute the value. But when they sell those shares (at today's nice price compared to last year), then HAKI's assets (CASH IN HAND!) goes up. Then it is up to the collective investors to decide whether HAKI's management can use the new funds to generate more revenue from the new cash.

My theory is that the dulution from the additional shares should be offset by increased revenue so that there is little effect on the EPS. If they have a good business plan for the increased equity, then EPS should go UP over the long haul. If not, then I will sell tomorrow.

I am relatively new at this, so please tell me if my theory is flawed...I'm holding on to HAKI and others in the same situation assuming that they will bounce back when the market realizes that the dilution from the additional shares did not really effect the ROI.

LTBH on HAKI et al...luck and health to all.
jec


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