timferristhe market "usually" takes a raising price to be the...

timferris

the market "usually" takes a raising price to be the absolute floor. This is because the market considers the buyers sophisticated investors. This being said it can go below but IMO is unlikely.

Also the fact that options were also issued shows positive sentiment on the placement side, giving the buys incentive for long term holding.

The discount for this placement is lower than what i expected, which is good news for shareholders. In financial theory a placement is kind of like a negative dividend. The company is taking money from existing shareholders (as well as the buyer of the placement). This is because the company believes it has a higher return on equity (ROE) than shareholders existing required rate of return (how much money they expect from the company)

Thus the company and also the buyer of the placement believes they can better everyone by getting more money for growth.



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