Tomorrow you will see the real benefit of the Shift Plan. All expectations point to a negative EPS. But with the 20% share dilution part of the plan, the loss per share will actually decrease, making ALU’s performance look better than it would be with no dilution.
What an absolutely brilliant plan. One can only hope for further dilution in the future.
Good thing we have jacdurkin/sfjlegends/whatever your name is to figure this out for us. You should explain to all the analysts how this works as I'm sure they have no idea how dilution works and didn't take it into account when they gave their estimates. If ALU beats the -$.08 estimate it must be because of the dilution that analysts are too dumb to take into account.
And once again, this is the reason to look and watch the absolute values and not "percentages" or "fractions". Dilution works against investors. Investors and are not fooled by earning reports manipulation. Speculators do not care about any numbers, and the stock is in an uptrend now due to speculation: a possible takeover by the likes of Nokia.
WRONG! THE DAY AFTER THAT RUMOR THE PPS FELL SO WHERE'S YOUR COnFIRMED UPTREND for that reason (nokia rumor) when earnings is tomorrow. An uptrend is when a stock continues to move over time, not one day. Actually the pps has been volatile. Hopefully tomorrow will be the start of an ACTUAL UPTREND.....
From what you posted I am led to believe that you can improve EPS by diluting the stock, thus making its performance look better than it is. Is this true?
If so, I believe Mr. Combes would have been an excellent student in my class given his mathematical skills. But I suspect our Business Department at our university would be better suited for him for his ability to manage earnings reports.