Watching XTHN today (bought at $7.50, sold at $8.30) I see the reaction to an equity financing deal can be overwhelmingly positive if for the right reasons.
Considering this, how would people on this board (as representative STKL investors) react to a similar deal for SunOpta?
What would your reaction be if say, it was announced that SunOpta was raising $50 - $100 million to build a Cellulosic Ethanol plant of their own?
Suits me. I'm an AE groupie AND a nutty-crunchy, so I'm fine.
But back to the original question of raising capital, I really would like to see more companies have rights offerings rather than just going to market. It may be more burdensome for management but it shows a little respect for the shareholders.
Happily, Investor Relations has indicated Steam is likely to be integrated into the Food Group; meaning higher margins on already existing operations:-) To me this would indicate keeping steam "closer to the vest."
There's no reason STKL couldn't spin-off BioProcess and still retain a majority, controlling interest. That would provide the capital to develop the BioProcess operation while keeping it's finances segregated from the parent company's. It would also result in a whole 'nother Yahoo! message board that the alternative energy groupies can go to while the nutty-crunchies can stay here.
The York, Nebraska plant is a catalyst for what you suggest, perhaps. SunOpta's own plant could be the next step, with full control to modify and tweak the process, further establishing confidence for potential new customers to buy the BioProcess "full service" package for their own plants. Or invite SunOpta in as partner.
Would the plant produce positive earnings within the next 5 quarters (probably would not break even for awhile then go green) so what you are predicting is if they drop earnings per share down a penny the stock will just go up 2.5 X. What would probably happen is a negative reaction to the dilution of earnings till the plant generates increased earnings.
>>What would your reaction be if say, it was announced that SunOpta was raising $50 - $100 million to build a Cellulosic Ethanol plant of their own
I'd ask you to loan me some $$ so I could increase my position......