I've been thinkingAbout the timing of the convertable bond issue. Management is enthusiastic about growing this company and had to know that there might be a significant drop in SP when the quarterly financials were released. They probably thought (and likely, correctly so) that some large institutional investors might bail out, looking for a more reliable investment. While those institutions were still paying attention to TOK and had access to funding by virtue of their equity in TOK common shares, they offered them the alternative of the convertable bonds. It was a sweetheart deal, and it seems to have worked. There is no dilution for five years, they get the required funding for their capex relatively cheaply, and some investors had the opportunity to pick up some common shares cheaply. Retail longs probably wont be hurt unless they sell in the short term. What seemed like a rather crass bit of timing may actually have been the right thing to do in the best long term interest of the company. Time will tell.
M.