Financings for somewhat illiquid microcaps tend to come at a significant (5-10%) discount off the then current stock price. If the quote is $9.50 then the deal comes at $8.75. #1 this is always dilutive. #2 institutional buying tends to dry up because they rather buy on the dea. #3 the combination of the two created an overhang on the stock until it passes. The time to buy if you can't get it on the deal is typically right after it is announced, since the stock typically opens at a 5-7% discount when the deal is priced at a 10% discount... you get the idea. Too large a potential financing here not to hurt the stock. I'm waiting till we slip back into the 8s.
Shelf filings by fast growing businesses have been statistically proven to be excellent entry points
And why is that?
Because a stock almost always sells off on a S.R. but you are right to buy now for bigger profits later !
The only catch I worry about is why they need so much capital, 50M, but that will depend on what they use the money for and at this point we don't know and don't tell me they said this and at. Never buy into the company spin and never think they will NOT have an offering to raise that 50M like commonsense tells people. Seems he's new to investing. The only companies that do not offer the new stock are the ones that are failing and nobody will buy their stock and SPCB is not a failing company. They always pump up the company like any other company will do. Just consider everything ! Good Luck !