RE:RE:Exited
Sthlheadr wrote:
exited ? Why the heck would you do that, this is in breakout mode. Your going to end up buying in for more next week
Well the 'next week' has passed, the share price has settled at the same price as my exit, and only traded above for a few minutes early Monday then swung below 18 cents for a short period, other than that, it's been bouncing between 18.5 and 19.5 cents, and we are back to normalized volume or even lower than normal with no more breakout signs...
The fact the company has diluted around 12.5% to private shares this week at a price of 15 cents shows the company itself doesn't see it worth the current price or it would have not agreed to issue the shares without a higher price or attempted to go the the market with a secondary offering. It is normal for a company to do private placements at a discount below current market prices, but this was almost 20% discount at the time of announcement.
I'm even more pleased of my exit now. (I'll admit I never noticed the private placing notice originally on Sept 30th below the Tom Lombardi announcement)
I'd expect volume to stay low and shares to fall gradually, like what normally happens. Any new business ventures would likely take 2-6 quarters before they positively affect the balance sheet. Not to mention Earnings Per Share will likely fall on the dilution even if they show mildly stronger income.
I'd likely re-enter a position sub 16 cents after its spent a couple months down there and levelled off. A sharp violent move to 13 cents or below without news would likely cause me to attempt to enter quickly if possible.
Good luck to all those long and I hope you too achieve your investment thesis targets, but I don't see much more upside right now, hopefully I'm wrong. I'll continue to monitor and assess...