ok with the help of the code from @NappingRabbit i concluded my own working code.
My main objective was to auto-resize the font size with respect to the stage size (550x400).
If the text length is few then show it as big as possible. And if the ext length is a lot then lower the font size.
Here's my working code for others who are seeking the same. (Flash CS4 / AS3)
var tf:TextField = new TextField();
var size:int = 72;
var foundLargeText:Boolean = false;
var txt:String = "Starting.... Lorem ipsum dolor sit amet, vim laudem argumentum te. Mel nihil nobis oratio ea. Ex sed dolores deterruisset, qui in eius liber. Ne qui minim iracundia, dictas saperet ut cum, id nobis conceptam persequeris sea. Eum at ferri dolor denique, mel audiam fabulas quaestio at. Illum voluptua facilisis nec eu, nam ea quem putent. Elitr aliquam mea ne. In eam iudico petentium scriptorem. Pro mucius oporteat te, impetus scriptorem sea ne, quo graecis menandri rationibus ex. Quando repudiare adipiscing mel cu, has insolens platonem te, eu quando scripta accusata quo. Idque dictas vis eu, an eripuit delenit conclusionemque pri. Et incorrupte signiferumque has, alia bonorum nec id, sea scripta insolens expetendis ne. This is end...";
tf.autoSize = "right";
tf.wordWrap = true;
tf.width = 540;
tf.htmlText = "<font size='"+size+"'>"+txt+"</font>";
tf.border = true;
while(tf.textHeight>=400){
size--;
foundLargeText = true;
tf.htmlText = "<font size='"+size+"'>"+txt+"</font>";
}
trace("using size: "+size);
if(foundLargeText){
tf.htmlText = "<font size='"+size+"'>"+txt+"</font>";
}
addChild(tf);
Thanks everybody!