gafa, it's easier to raise cash, loans, etc...with a big operation than a small one. if I was managing this baby i would expand it the most I could, the faster I could! We need size and volume! If they use the shares to bring operations like this one at these prices (bargain), I welcome everyone of those!!!!
Sentiment: Strong Buy
It doesn't mean they will pay with cash from their cash 'reserves'. Deals like this can be financed. Besides, $7M in cash for $38M in sales and growing?? How do you think SCTY got to be the size it is today? It wasn't through organic growth, it was through acquisitions. Same with Google, Apple, MSFT, and any other growing company.
at least they have a $200 ml shelf registration which will be pulled as early as next week I guess despite management's denial of having any intention to use it short term on the conference call just two days ago.
Moreover the acquisition demonstrates the severe overvaluation of the company's stock - if they cann pick up Sunetric for some change why should RGSE be valued at $200 mln or more ? Applying the deal metrics to RGSE's valuation would bring us to a fair value of around $1.30 per RGSE share