RE:RE:MASSIVE Deal. $396.6 MILLION acquisition of Canadian portfolOkay, so stock price went up, so initial read is that the market seemed to like the deal.
However, I'm trying to understand how much incremental revenue will accrue vs. the incremental financing the company is taking on. Also, financing through shares issued at $1.70 means a bit more dilution. Despite this, the stock went up to close at $1.89 (although this is down from an intraday high of $2.27).
My average price is below $1.70, so I'm less concerned about the issuance of shares at $1.70, but just need to get a better handle on the financing costs vis-a-vis how fast the incremental revenues from these acquisitions will flow in. This is where one has to have some faith that management knows what it is doing.
Again GLTA... we shall see what tomorrow looks like re stockprice (as more people will have had more time to digest the news).
C