01-06-2012, 09:27 PM
(01-06-2012, 08:54 AM)dzwm87 Wrote: One has to realise the reason behind it. If for instance, a huge portion of the change in diluted EPS is due to huge warrants which are due to be exercised soon and its exercise price is probably at a huge discount, then perhaps taking the basic EPS will be better.
If the likelihood of additional share issuance due to warrants or options is high, shouldn't you use the larger "number of shares outstanding"? I.e. look at the diluted EPS, instead of the basic EPS. Did you get it mixed up?