$4 sure seems too high to me. When the new stock issue was announced, CWST was selling for about $5 a share with 27.36 million shares outstanding -- that gives a market cap of $136.8 million. With dilution of 10 million more shares -- plus another 1.5 million option for the underwriters -- that means that there will be 38.85 million shares outstanding. $136.8 million market cap divided by 38.85 million equals $3.52 a share fair value.
Does management really think that this dilutive maneuver is so brilliant that it's worth a 13.6 increase in share price to $4 a share? Or is this more smoke and mirrors from the money-losing CWST management that is riding this nearly bankrupt company into the ground? It sounds like CWST's last gasp to me. Who is really going to buy this pathetic POS?