Hold on for a little longer.
I was able to get a message from Bob Mancuso. Here's what he said. In trying to sell bigger systems, he is being told by potential purchasers that they are concerned about the capitalization, ("staying power") of Acrodyne. It is not the technology that concerns the potential purchasers, it is the perception promoted and expressed by Acrodyne's competition that doing business with the competition is "safer" because of their financial strength. In order to have the capital to bond performance, he felt he needed the cash. He realizes that this is far from an "ideal" deal for the stockholders, but it was the best he could do after looking into a number of alternatives, most of which he alluded to in his message to me. For various reasons, each had their own downside so he opted for this vehicle. As a shareholder himself, he felt the dilutative effect would be offset by the value to the company of needing the cash at a crucial time for the company. It sounded reasonable albeit disappointing. However, if it means that we have 75% of a 50mm sales per year company versus 100% of a 12mm per year company, I guess I'll go with the latter. One vehicle I didn't have a chance to discuss might have been a direct offering to current shareholders. I don't know whether this would have been too expensive to pull off, and I don't know about the registration fees, etc., however, in the future, this might be a cheaper way to raise capital. I know that I would have bought the stock in a second for $2.50, and would not have shorted it against the market price, as many of the longer term investors would not have done. In addition, for those who did short against the market, my guess is that there would be some investors to pick the stock up at $3 per share its at now anyways. I think that the next news to digest will be the earnings picture, and then we will have a breather for awhile in hopes of getting some sales.
The stock could get into the 2's. I noticed that the bid/ask at the end of the day was 3 1/4 - 3 5/16 with a size of 800 by 6600. So someone is trying to dump about 6.6k @ 3 5/16, at least for today. If they come in and sell "at the market", our favorite market makers could drop the bid asked into the 2's. |
