They won't buy anything soon. But they are preparing for it down the road with the share authorization increase it would appear. People have overreacted to that. The company doesn't need money and is virtually breakeven to profitable now. The new stock is expressly for employee incentive plans and acquisitions down the road. This is a different comapny than it was a year ago. Its organized, focused, communicative internally and externally and has the best products at the best prices in the market. Its just a matter of time till people realize all of this. The numbers going forward should impress.
You almost sound like an employee. Why would that many shares 150 M shares common and 2 M shares preferred need to be issued for employee incentive plans? There has been alot of dilution already! Many of the current top share holders in the current proxy bought many of their shares at $0.23 (not in the open market but from the company). These type of owners double their share value if the price only goes to $0.46 while the rest of us that have owned shares for many years will not even break even at $2. I do not think that share holders are over reacting to addtional dilution (this has been the track record for the last 1 1/2 years. What price did you buy your shares at? This company has had good products for along time. Please note this is not a private company it is still public. The board looks the same today and in the proxy as it did 1 1/2 years ago.
I am certainly not an employee. I have been in this stock for over 10 years, when it was Fiberstars doing PIPE deals. I have been on every conference call for the entire time that I have owned this dubious piece of paper. I have bought a lot of stock over the past year and my average cost is still well over $1.50 a share. I am not happy about how ANY of the dilution has occured. Mr Kaveski was clueless and cost us all dearly. This share authorization increase is bothersome to say the least, but I am looking at how Mr Tu has handled things versus the previous regime. He is a large shareholder himself which makes this situation different. He isn't going to have much interest in releasing those additional shares unless he thinks it adds value to the company......which should be a value additive acquisition....thats the only thing that makes sense. The employee plan is diminimus in the scheme of things. EFOI is either going to participate in the LED market explosion or we are all going to lose all of our money. I am betting that things are in better hands and heading in the correct direction.
The way I see it, they are increasing the number of share that can be outstanding from 100mil to 150mil. of the new 50mil that could be outstanding 10mil will be used for employee stock incentive plan. Also the way I see it, EFOI has added 4 new members to the board. In final analysis the company has to show that it can make money. Without that, our stock is going to trade in the 30's or lower. Be interested to see what Mr. Tu has to say at the annual meeting in a few weeks about the companies ability to make money..