RE:RE:Why Sell?ddogold wrote: Retiredcf , you haven’t posted since the financing announcement , any comments ?
I do have some comments but you're probably not going to like them.
I have been a fan of BABY for awhile as I like the sector and I think their products should do well.
That said, the most important attribute you need to look for in a company is good management. You may have the finest products in the world but if management don't know what they are doing, the company will die on the vine. IMHO, management have dropped the ball big time with what I consider to be one of the worst financing deals I have seen in over 30 years of investing (at least from a shareholders perspective).
There are 3 problems.
1. Financing at $2.15. Pre announcement, this was close to being the lowest SP in the past year, not to mention that the SP was a buck higher only two months ago. Although disappointing, I could have lived with it if they had got the next two points right. But alas........
2. Five year term. Would have liked 2 years but 3 at the most. And this leads to the straw that broke the camel's back.
3. A strike price of $2.70. Let me say that again - $2.70! We were close to this price last week and we were there a month ago. If we had a two year term this would be exceptionally disappointing but with a 5 year term, it is positively obscene. It provides no incentive whatsoever for management to get the SP moving.
I may be way off base but again IMHO, the best case scenario is dead money for a couple of years. Worst case scenario is that investors continue to bale, more financings will come our way at lower prices and eventually the shares will be diluted into oblivion.
I wish all shareholders the best of luck but I have moved my investments elsewhere.