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In effect, ATHM shares are already diluted by the XCIT deal since some buyers who would normally have bought ATHM stock have instead bought XCIT to try to get a little better percentage. This has reduced the demand for ATHM stock.

ATHM's shares may have had even a higher rise this past week if some of the demand for their shares not gone to XCIT instead.

However, it's hard to measure because although in essence the supply of shares has increased because of the XCIT deal, the demand for the shares was also increased by the XCIT deal.

So, when the actual XCIT purchase goes through, the effect of the additional float should already have been taken into account by the market, since those who purchased XCIT knew that they were going to be ATHM owners.

Just an observation.


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