Post by
tamaracktop on Jul 15, 2020 10:02am
Another write-off day
You can tell from the opening this will likely be another frustrating day for many. Opening up 1 cent on 3,000 shares is a pretty good indication of hibernation . This may well be a function, at least in part, of Xebec's current balance sheet. It may seem counterintuitive, but until Xebec actually puts some of its cash hoard to work, or at least indicates the reason for the recent issue, Xebec has too much cash. You may laugh, but it's 100% true. Companies are being punished for having too much cash these days. In an environment of zero interest rates, cash is actually dilutive. Cash earns nothing. Take comfort and have confidence in the quality of Xebec's management. As I've said before, it's very probable that Xebec undertook the recent raise because they needed even more cash than they already have to achieve a planned objective. The probabilities are good that the next announcement, other than the quarterlies, will clear the air in that a large portion of the war chest will be spent, one way or the other. Xebec's management has a proven ability to make accretive acquisitions. Acquisitions with attractive IRR's, and at attractive prices that are by no means "inflated". Otherwise, they wouldn't be accretive. As I've said, they didn't raise $28 million gross to put it in Tbills. Until then, we would appear to be...stuck