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Casella Waste Systems Inc. Message Board

  • bruceoren bruceoren Sep 28, 2012 8:03 AM Flag

    New shares priced at $4 -- look out below

    $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?

9.16-0.13(-1.40%)Aug 24 4:00 PMEDT