Floating new stock at a price of 35% of book value was the equivlant of selling all their properties at a 65% discount so they can buy new properties. They need someone who can do sixth grade arithmetic But Even if the stock goes to a price of 2 management will get new options at aprice of 1. If they go bankrupt their golden parachutes give them additional millions. A pure case here of lose lose lose for shareholders and win win win for management. In prior times they would be charged with criminal acts.
What gave it away? Was it the drop from $80 till now? Personally, I would think more of you had you sounded the bell at $60 or even $50. But now of all times?
So help me out here; why is stupid management buying stock if they can get options for a buck? Dumb is dumb, but even a dope knows the difference between a 5 and a 1. And the fact that average daily volume is so high on a stock with so small a float and #$%$ management? Seems a lot of "dumpies" are NOW buying this issue for some strange reason.
So this dummy bought some too. My excuse is that it is about to break a trend line that should allow it to fill a gap for a high percentage move from here. If I get something else along the way, fine, I'll take it.
Me thinks that the market is telling you there is a hole in your strategy somewhere. Ol Auntie Ethel always said, "Don't fight the tape".