REG FD - Big money supporting this new 50mm share authorization?????? Think again
There have been several posts suggesting that this initiative is going to pass because big money investors have already weighed in. I don't necessarily agree with that theory. I believe there is just as much skepticism as some of us on this board have as to the timing of this initiative. After contacting several of our largest shareholder investor relations depts. I found them to be just as skeptical. As a matter of full disclosure on my part I was not able to ascertain whether they were voting one way or the other( didn't think I would get that information), but the information i did receive was consistent with what I ,and others, have considered this proposal. "Potentially Dillutive short, mid and long term". Without any prompting, I tried to ask questions that would not lead to any conclusion. All 4 of the investor relations departments referred to this as dillutive. One even had the courage to suggest that there might be information of other initiatives that might warrant such a proposal , but followed up with a REG FD response that all of us would be privy to that information at the same time. As competent and compliant as this management team is I highly doubt they are leaking information to the largest shareholders of initiatives that would rationalize this proposal to "big money" before all of us. THis just wouldn't be consistent. Therefore, I suggest that big money is not fully behind this. Consider the ramifications of "potential" further dillution when it is "not" necessary " at this time". Let the organic growth take hold. We can address this topic again later when managments current initiatives have shown further fulfillment. Vote your position otherwise the board will vote for you and that is a given answer that may not be consistent with your position.
Cato, I will not be as blunt as whogo, but I think you are dwelling on this matter too much. Many companies have such policies and right to offer new shares, it just goes with the territory. It might give them bargaining tool in case of buyout offer, or also enable them to access cash in ramping up a product. I wouldnot worry about it. They have I guess 60 to 90 million in cash, and no debt,do not think dilution would occur any time soon. Iwould guess you will see sp over $5 before any diluton takes place, and I doubt if it does then.
Appreciate the courtesy of your post. You may not have read other posts I have made regarding this. Whogo has something up his craw about this and I am not sure why. I chalk it up as a simple difference of opinion. I have articulated several times why I don't believe the timing is right for this and I am not going to get in to it again. If people want to read the various reasons they can search my past posts or newbiemike's and read the various strings attached. ( as opposed to "blunt" responses that have no substantiation. There are many logical reasons to "delay" this and we have articulated them several times.