The terms of their offering were as best as you can hope for. Everyone knew they needed money. Now that is behind them the stock can go back up. When the results are good (3qtr) this will be in the teens.
Wow, that is an interesting approach., but somewhat alarming as it places no valuation of the dilution. You seem to disregard that 10mm shares being offered at $5.7, DILUTES the existing 33mm shares, by 33%.
So simply put, longs, such as yourself and others, now own shares that will be worth a 1/3 less than after the offering. Existing shares now worth $5.7 today, after March 7 will be worth $1.88 less or about $3.82. But yes, you are right, they will have another $55 mm in their corporate coffers, but all at the expense of today's shareholders.
Doesn't seem right.
I do not think the stock will go necessarily go down to $3.88 in the immediate short term, but it will be far lower than what is closed at today..