this stinks, page-36

Writer,

"First the problem is it's too dilutionary. Then it's the price, back to dilutionary, head in head out..make your mind up."

Low price = extra dilution. Please explain how that constitutes changing my argument?


Btw, I don't see why anyone was expecting a drop to 85 cents. The issuance of new shares led to dilution of approximately 30%. To drop to 85 cents, would have been a price decline of just under 40%. Why would that have made any sense whatsoever buddy?

Dilution was expected, and accounted for in valuations. I think roughly 20% dilution was expected, and another 10% over time as management are issued options etc. So to my mind, this CR had an 'unplanned' additional 10% dilution.

This resulted in a share price decline of 20%. The price has declined twice as fast as the value. This would not constitute a price holding up well to my view.

As always, a pleasure discussing the scenario with a company spoke.......cough, informed person.