lot of people call out bad timing for cash raises (for any stock) - when is it a good time for a cash raise? A lot of people view cash raises as a sign of corporate failure - even though insolvency is worse. A lot of people are critical of technology stocks that move too slowly, wanting them to develop products faster, market more aggressively, pursue sales opportunities faster, and stay ahead of competitors - but don't acknowledge these things burn cash. A lot of people are critical of technology companies that pay high remuneration, yet are also critical when key executives move to other companies.
When is the best time for a technology start-up to raise money? ANSWER:
When you don't need the money (yet).
Just before making a major announcement.
To firm-up the balance sheet to give a potential customer confidence.
When the share price is at a high point.
To fund a major new initiative.
The whole purpose of listing on a stock exchange is to make it simpler to raise money when you need it. We shouldn't be surprised when it happens.
Everyone who has played the stock market for a while knows that the price falls after the announcement of a cash raise. If you can sell fast enough, you get the chance to buy back in lower.
This is neither negative or positive - its just business as usual.
Now, lets get back to the fundamentals.
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BRN Price at posting:
33.3¢ Sentiment: Buy Disclosure: Held
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