RE:RE:RE:RE:Wouldn't financing drive the price lower? +dilution & +debt?Who knows. I was long, but not long or short right now. It's all so murky. Not sure what will end up happening. The management has really made a mess here. The torque that the debt now puts on this stock is joke. Shorts on black, longs on red, MT's spinning the the wheel. Doesn't make me feel too confident.
HamSandwich wrote: wallop13 wrote: Sorry. I meant to say 50 million shares. Not 50 thousand.
wallop13 wrote: No. Even if they were to issue 50,000 shares at $12 and put that money towards debt the share price would rise because the enterprise value would stay the same, but the bankruptcy risk would be lower. Hence the share price would rise. But the rise would be more limited because the market cap would rise twice as fast with double the shares.
JAInvestor wrote: J
Who in their right mind would be on the other side of that taking the 50 million shares at $12/share?
You really think there's an appetite for that?
We're a lot more likely to see debt converted into equity and existing shareholders taking it up the pooper than we are to automagically issue $600 million worth of shares and also raise the value of all shares outstanding.