So I bought 10,000 shares around this price before FDA approval. Sold afterwards for a decent profit. Now that it is all the way back down here again Path has my attention again. Now I know many of you have been holding out and are on the loss side right now. My question is, if you still believe in this stock why don't you average down? My reservation right now is if they dilute I can get back in even cheaper but like many of you say you could wake up any day now with some great news and a big increase in the pps.
Expected dilution appears to have just been priced in to the stock - already. Personally, I do not believe that management will do anything more than a small stock dilution at current prices, if at all. Any finance expert can tell them that they are much better off raising money with debt, until the stock price is higher!!!
I would be VERY surprised if they, for example, sell 10 million shares at $2 or lower. They will not dilute the shares by 33% to raise $20 million. But they very well might raise $50 million by selling NOTES that mature in 5 years or so. OR, they MIGHT do a convertible debt offering BUT it would be convertible in shares at a significantly higher price, maybe $4 or higher. Best scenario would still be a partnership that brings in $50 million up-front right now but for some reason, traders do not seem to be expecting that. They COULD BE guessing wrong.