For chuck, money, whisper, wanger, you guys seem to know
a lot about the recent deal. I have asked for help from you guys in explaining how the deal is bad for ARRY. I was thinking the deal was good, but you seem to think o therwise. I am now thinking about selling, since you are pretty convincing. Now I am getting more confused, seems the price is riising, Is this what is called a "dead cat bounce"? One or more of you please respond and help me to understand the deal. Just in a nut shell, tell ne the pro and cons of it. thanks
It has been over24 hours and none of the people I asked for info has responded. All of them have been bashing ARRY over the recent financing deal. However, several of you have responded to say that the deal was good for ARRY. I myself have felt that way also, to me, it would not be reasonable to think a large public company could act in a way that would place other entities goodwill over their own. Just wanted to see if any of those guys couldput forth any kind of reasonable argument in their .favor. I suspect to sp starts heading north this week.
The company borrowed at 3% to pay off $90+MM of debt at 7.5% saving $3.5MM annually in interest. No dilution until stock reaches $7.15. It also picked up $35 + MM in working capital. How can any of that be bad?
Pros: Array has lots of money now for more trials. Funds who bought believe SP will at least be $7 in 2017. Maybe expect 50% gain from $5 by then. Not too bad for a 4 yr gain.
Con: Warrant exercise at $7 instead of higher. Investor confidence got deflated.
The stock is going up right now because it technically has to, it is overextended and will move up and trade sideways for a few days. Don't be fooled, the stock will continue its downtrend. Give it a few more weeks until the technical analysis shows a trend reversal, and then pick up some more shares.