For longs, Action junkies & speculators, let's chew on this:
In the absence of hard news I would propose a discussion based on previously announced news
that TRBD was in discussion with various entities to take an equity stake.
Even if you dismiss the rise in share price in July above old highs to short squeeze,
buyins, and irrational overexuberance:) the share price has still been halved.
This "loss", paper or otherwise, seems to me, to present an opportunity
for a potential equity stakeholder to pay half as much for the same percentage of the company.
My question is this:
If the company's current market cap is in the 225 to 250 million range,
and an acquirer is willing to put up 25 million for 10% of TRBD, can the company use a large chunk of the cash influx to buy shares,
retire them from the float, and issue a special class of preferred to the acquirer?
From the other perspective, albeit negative, what good would it be for
TRBD to issue another 4 or 5 million shares (further dilution) in exchange for working capital?
Many companies, at least those with adequate cash flows, minimize dilution
by purchasing shares in the open market for their employee stock option plans.
This idea is a variant on the same theme. Anyone care to comment?
MikeC |
