Kepo is entitled to his opinion. I really don't care what his motives or agenda is. Looking at the stocks he comments on, I don't see a lot of financial analysis, nor would say he invests in blue chips. (CKA) I don't have an opinion about him good or bad. For me the simple facts are post completion of the raising STL will own indue, they will have 1.7m more in EBITDA, will have increased cash-flow significantly, will have a low debt profile and will be trading at a significant discount to the market cap it reached of 28m which we ll thought was still low, when it hit 4.6/7 cents a few months back. The dilution of 3.3 m on a 18m market cap is not significant (17%) as far as small caps go, nor is the issue price big discount to the level it traded at most of the last 12 months, and the funds are being used to fund an earnings accretive asset. Lets not forget the strategic reason of acquiring Indue wasn't only the revenue but the access to the huge data base of ATM resellers, something very important to a company looking to aggregate some of the smaller players. I am very happy with the raising, perhaps partly because I have participated and got the benefit/value of this issue, but mostly because i am not a fan of to much debt, This strikes the perfect balance between containing the share base and not having a lot of debt
STL Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
