There they go again.....issuing debt convertible to stock. This is just like issuing stock options to employees. In the future sometime, the number of stocks potentially can increase significantly (3,000,000 shares by my calculation!) diluting EPS for other stockholders. Is this a pattern? Robbing from tomorrow to pay for today. At what point do the banks say no more to the convertible debt?
As far as the investor groups knowing what was coming, you bet! This company does not make a move of this size without them knowing. A deal like this does not happen over night. Many people both in and out of the company need to be involved. Then the investors traded just enough shares (explaining the low vloumes) to maintain the price going up followed by a good earnings report and selling shares at a nice profit then BAM!!! a huge convertible debt announcement and the little guy takes it on the chin!
Jett - you have said they had the lowest interest rate in the business, then why do they pull a stunt like this to further dilute shareholder earnings? Is this substantive enough for you? I say it is because the management is only out for themselves and their close friends in the investor groups! Piss on the little guy!