At the risk of sounding like a Pollyanna, Larry, I would be rather encouraged by this development. I would draw the following inferences.
1)Either this institutional investor is colossally stupid, or he believes what he hears from Dawson, et.al. And not only that he believes, but that he's also done his due diligence (sp?) and is satisfied that he's getting proper answers to his questions.
2) Either he's colossally stupid, or he must be convinced that the potential dilution from the floorless convertible is unlikely because of the fact that there's a helluva lot more upside than downside.
3) Either he's colossally stupid, or the company must be a lot closer to announcing POs, etc. than you or bears on the stock would currently believe. These guys that purchase these private placements of this sort are generally not too terribly stupid; otherwise, they wouldn't be running money for very long.
I think this placement is a very positive development. In terms of the dilution, I'm kinda simple, but an increase of 1 million shares on a base of 28 million shares doesn't strike me as particularly significant. Frankly, I'm more encouraged than ever.
Eli74 |
