RE:A few thoughts.
FB, I take a bit more cynical and negative view here.
The Good:
-Reduces uncertainty and brings cash on hand to $90M
-Buying opportunity
The Bad:
-The timing is abhorrent. Terrible. Stupid. Aggressive. Unacceptable.
-The dilution to current shareholders is greater as a result of this agressive approach. Why so agressive on timeline? Why not closer to AP FS release or after two more quarters of results?
-Blatent disregard for current shareholders. RS by 10 (5 would have done) then dilute by 22%.
-As with the .55c PP, Co has now raised 60M via share issuance. Stupid. Wrong. Unnecessary from a timing and total $$ perspective.
-It will take a month or three to get back to where we were. See last PP charge and the bottom we had to carve out to start moving up again (although I fully concede we are at a much different place with regard to company maturity)
-Reduces EPS
-Reduces target prices
-Reduces possible takeout price (20% dilution will do that)
The Ugly:
-Down 20%. More to come imo.
-Short term impact is significant. Longer term it is muted.
Overall, McCunn is overly aggressive. Lacks patience, but is dead set on AP success and will push it forward, but I feel some very important events are ill-timed and should have been planned better. The end game and relative end game price doesn't really change much, so I stayed pat. Since I decided not to sell at $6.15, I will have to "eat it" until FY18 despite my total disagreement with his atrocious timing.
B