that huge debt/equity ratio (356.54) is what scares me away from buying. On the other hand, the high short ratio should buffer it against big drops near term. http://finance.yahoo.com/q/ks?s=PSUN+Key+Statistics
Do some DD on CADY. I think with the right momentum we could soar past $1
Get the full CADY profile at: ow(dot)ly/rAbsZ
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I think the dilution has been priced in since the deal was announced years ago. They could exercise the rights right now, and perhaps make a profit by dumping the shares, since it's trading over $1.75. Or they could pay nothing and hold on to the rights and see how it plays out. Since the company is not forecasting being in need of cash, they appear to be showing confidence by not trying to cash out, but that is just my humble opinion.
What you just said has no impact on the company's cash flow, which is why analysts look at the adjusted numbers. So that amount you quoted does not have to be set aside. Do your own due diligence, everyone!
No. What I was referring to was the other agreements that exist and how they are accounted for. In the agreements with its lenders, they have rights to purchase PSUN stock for $1.75 for a 5 year period. They can buy up to 20% of the company. Every 90 days, the average stock price for that period is calculated. The difference between $1,75 and that amount must be set aside and effects their bottom line. So if the stock price moves tooo quickly higher during any period it is a negative. Look 2 quarters back when the stock traded up to $4.59, they accounted for almost 21 million related to this issue. All I am saying is that the company needs to generate greater bottom line results to offset these additional cost. It is complicated. But it is not good for the company for its stock to move 40% higher one month, only to give it back a month later. In 3 years I see over 15$. Good Luck
"The agreements with PSUN lenders make it very hard or even negative."
Are you referring to the long-term debt which is due *three years* from now in December 2016? That makes things difficult right now when November SSS were up last month? Some people will post anything on message boards.
I wish u were right. but. very unlikely to see any follow thru. The agreements with PSUN lenders make it very hard or even negative. I love the stock to be at 12 to 15 in 2 1/2 years. I see it trading in the $2.80 to $3.80 price range for the next 90 days. Good Luck
Ken J Haley @KenJayHaley 3h Twitter
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