LGL had $3.10 target written all over it and if that failed the low $2.80 area. Now for the placement! Well if SBM were able to find fools to pay 41c for their shares that had only traded at that level for 3 days and for the 8 months prior averaged under 30c then LGL may surprise if their brokers have access to these fools! SBM management were real smart because they pumped her hard for 3 days and pushed the price up 50% and then had so called sophisticated investors buy up at a 15% discount to the pump high. LGL management aren't as smart as they have waited for the share price to drop 10% and will have to issue at around a 15% discount using the SBM issue for guidance which brings the issue price down to $2.90. I for one would be absolutely spewing (unless short) about this issue. I recall being long at $1.65 and them doing the exact same thing. The issue was around $1.50 but the share price was down around $1.30 within a few weeks. They couldn't have picked a worse time announcing this in a correcting market. Two weeks too late! If they get $3 they have done well!
LGL Price at posting:
$3.31 Sentiment: None Disclosure: Not Held
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