I appreciated the number of shares that are to be issued, however the fundamentals of the business bought from Ericsson I feel overides the concerns. Stocdoc- if you remeber we were, me included was concerned with qtm shares of 800million which when I first looked at it was 45c which today close at almost $1- now this is scary, meaning that the business is worth some $800m but it looks like the market is appreciating a great central heating business and not concern with qtm number of shares.
Similarly here if the fundamentals of tny business is good, it needs to be paid for either through share issue or directors loans (which is showing that directors are committed themselves), so more shares must be issued. In due course if it is a good business the profits will flow through and share price increase accordingly.
So green alert is based on the potential from the business and what I thought tny could do to expand. As I said the main initial concern was clsoing the deal but that has been done. According to tny as well that they have booked excellent sales for the first half again indicating that the business is sound.
The buying today has been good and market depth suggesting further uptrend. Perhaps together with the potential business, the sox deal may be announced on the upside?
