Rocky, naturally they'll follow Syquest's business model . . . they'll issue more shares and the stock will go up.
BTW, does anyone realize that the Company's market cap has plummeted recently.
1st quarter: 280MM shares X $7 = $1.96B market cap
Now: 260MM shares X $7 = $1.82B
That's a 7.15% drop in market cap. In other words, without the price changing, you now own a bigger % of a company that's not worth as much as it was at the same price last week.
Pretty sad, huh? Maybe the reduction in shares O/S on a diluted basis helped keep the stock up today.
On another front, here's the outlook for Iomega:
The May 7.5 calls, which are only 7/16 out of the money, now go for 3/8. That means that the market doesn't think too much of Iomega's chances for going over $8 in the next month at least.
Pretty pathetic.
Ok, I'll give you another example.
The May $5 calls are bid $2.0625. THERE'S NO TIME VALUE IN THIS CALL AT ALL. That gives you some idea that no one cares any longer about this stock.
If you hold Iomega stock, I suggest that you sell your shares immediately and buy the May 5 calls. You'll free up $5 cash on each share that you can use on other stocks.
Of course, you risk the stock going below $5 in the next month and losing the total value of your calls. But, if you owned the stock, you'd lose the same amount. The difference is that you'd tie up less money without any additional risk.
Ho hum. |
