Chip, I read your post on Stockhouse and for the most part I agree with it. However, I think individuals are anxious for the PP to close, because, like it or not, there often appears to be a sling shot effect when companies do these placements. That is, the share price is higher than the PP price at the time the PP is announced, it pulls back to the PP price and once its closes, it takes off. This makes some sense to me, as the Company is diluted by the number of shares issued with the PP and hence, its value on a per share basis is reduced. Nevetheless, after the PP closes, the company's balance sheet is substantially stronger and for companies in a growth phase (i.e., Infowave) it is essential that they are sufficiently capitalized to fund losses (I know they're making some cash now), r&d and growth. It is difficult, if not impossible, for companies in this phase to simply fund growth from operations. I recognize that you didn't suggest that in any event. Additionally, we expect that the brokerage houses who did the PP will be drafting research reports and issue buy recommendations shortly. I understand that CCC intends to do so within the next week or so. I also understand that they are not allowed to issue a buy recommendation during the PP period. Crux: it may not be that the closing of the PP will drive the share price, but it is a result of the closing that the motivations of the brokers change and their actions may lead to increased share prices.
I agree that it is the Company's fundamentals that will drive this thing in the years to come. Ultimately, that is why anyone should invest in any event (earnings, alliances, fundamentals, etc). However, companies on the VSE are manipulated. Companies doing PPs on the VSE seem to be manipulated even further. I agree that the share price will be less manipulated once we are on Toronto, but we should see substantial upward momentum even after the closing of the placement. JMO.
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