Yes they want a margin of safety. However, Larry had worked in the US investment banking sector for years. He is now on the other side of the deal. So we have a CEO that has the experience and knowledge required to make the absolute best choices for capital raisings with the opportunities he creates or are provided to him. That was the point the other commentor was making.
It's not all about the new investors by the way. It's about all of us. Zip management included. We all want a good deal and every single one of us has given money in the hope of higher returns later on. Larry isn't going to just randomly screw himself out of deals on the regular just so hedge funds can get a profit. Remember he owns a huge amount of shares, so any dilution that happens, he suffers the most. For however many few thousand we could lose, he loses millions.
Don't underestimate the want for more. I believe Larry is a smart and sincere person, but just because he has a few hundred million, doesn't mean he doesn't crave a few billion. The thirst for more never stops, especially not in the financial industry haha And he's not going to get those billions by gutting the company and shelling out it's worth to hedge funds so he can make a quick and discounted buck.
At least that's what I'd do.
BOT, you need to see Larry as though he's a long term holder. As much as you might dislike long term holders haha. Long term holders believe in the company and value it higher than you do. So will want more out of deals than you do.
Instead of bothering to ask a ridiculous captial raise price question. Just simply ask yourself, what would a long term holder expect to happen, and what would then be negotiated against that expectation by a hedge fund.
Z1P Price at posting:
$8.11 Sentiment: Hold Disclosure: Held
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