Dilution with no explanation. Something is not right.
The management had been on media/conferences touting its balance sheet and cash position and the fact that they generate a lot of cash. In addition they have the bank lines that they could have tapped.
At a price of $12+, the CEO was claiming that the stock is cheap and now he is selling the stock at 8 and change.
From all known facts, this is the worst possible way to raise cash.
Thanks for the post. My "free" Level II didn't show it on the close. Of course, I like that it was raised $.05. Another 20 days or so we should be able to see the quarterly report of who this might be ... unless as we suspect, an underwriter is propping the market until they finish unloading all the secondary.
I agree. I didn't see on Wednesday's close, but it's there this a.m. at about 275k. I still think the underwriters of the secondary haven't unloaded all of the secondary yet, and someone is propping the price up until all the secondary is sold off by the underwriters. That would certainly suggest downward price pressure in the future.
IMO, either (a)we are all being victimized, or (b) there are one or more acquisitions on the horizon. I believe the latter and have been adding for the past week. I still believe we will have an acquisition announcement before July 4th, but that is nothing more than a guess (based on quarter end).
It is a little odd. Just a few days prior to the offering Joe said "even though the lines were reduced they could still do one or two deals" Why not do the one or two deals, wait 6 months or so, and then see how the companies are doing. I think they are going to do a very large deal. Maybe 125-150 million.