To All:
I have mixed feelings on the financing NR. Many stocks dip after a PP, especially such a large dilution and also considering that now that the financing is in place, they can let the market float, knowing that it will come back. This would be good, because it would drop to a really nice price!!!!
On the other hand, if the stock price was held back for the financing, it might just take off like a rock held back in a slingshot! They are not going to finance at $2-2.5 if it were going to drop far below $2. Like some have said, in this market, for a junior to pick up $10.6MM seems unlikely if there is nothing there. Having said that, didn't Donner get $14.5MM around this time last year and look where they are now!
I don't pretend to know Jack Squat about share financing, but my take on it is a quick lift in the morning, maybe to 2.60 or so and then a pullback to 2.20 or 2.30 and the either a slow steady rise or fall for the rest of the day to either $2.45 or $2.00, depending on how the market reacts overall (ie: what the experts make of this financing).
Thoughts?
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