RE:RE:RE:Holy Moly Metal, - think you are absolutely correct. Again, i followed up with an email to Sandeep asking him the below question ---
Hi Sandeep,
Very stupid question ---- if the $40M raise (which amounts to $0.2 per share basically) caused stock to drop only $0.11 per share….why didn’t we do a raise of $80M and set aside $40M of that to buy on open market $1M a day for 40 days in a row??
Sorry --- I realize probably a stupid question but one I’ve always wondered about. As we discussed, our market cap right now after fully issued shares will probably be 200M shares X $1.9 = $380M with $65M cash.
If offering was $80M --- perhaps market cap would be 220M shares X $1.75/share == $385M ….but wouldn’t’ you think setting aside $40M of that to buy back $1M a day for 40 days would make that $385M more like well north of $500M??? Personally, I think that $500M is very conservative based upon daily volume…
Anyway, no urgency on response of course --- just trying to think outside the box and burn the short sellers and /or penny flippers of WRN stock and help out strong hand shareholders!
Appreciate it!
His response was basically :
1) not a stupid question
2) When we do a raise we really need a specific reason on how the $$ will be used
3) If we use the raise to buy back -- hedge funds might catch wind and play games
4) Buybacks work best when you use your own cash flow to fund
5) Using raise one day to use funds next day to prop up stock can be dangerous.
Last (but not least in my opinion) was Sandeeps response "Ultimately, I rather get the stock to a better level through finding more natural buyers than sellers. I hope that helps"