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Author: lperanich Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 580  
Subject: Re: 100 Million Shares Date: 7/20/2001 8:37 PM
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"Does anyone have a reaction to the Frontier board's proposal to increase the maximum number of allowable shares to $100 Million? Off the top of my head, that only can hurt the current shareholders, can't it? "

FRNT currently is limited to 40 Million shares (if I remember correctly), and their number outstanding is 28 Million and change, so they are reasonably close to the limit. There are several reasons they could be wanting more shares.

1. They anticipate that the share price is going to rise, and they want to copy Southwest and do 3/2 splits when they get to $30 per share. They would need more shares to do that. I would think this would be good for shareholders.

2. They need more cash to finance all the new airplanes (or whatever), and plan to sell shares. I haven't heard anything to this effect, but can't rule it out. Probably bad for shareholders as it dilutes earnings. Of course, it would reduce the debt and give the company more staying power if the downturn in the economy continues.

3. They plan to go acquire some of the competition now that some of their stock prices are down. Again, I haven't heard anything about this. Could be good or bad, depending on the deal.

4. They just want wiggle room.

Does anyone else have any info/speculation?

Thanks
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