RE:Unbelievable!LarryBird wrote: Budd, Bandit and Jdsd0517 have been right ALL along. Not one of them ever bashed the company. Calling things that raise red flags is not bashing.
The fact that management raised money at $ 3.70 can only mean one thing; they needed money and they knew things will get harder in the credit market. I'm not sure what they can " acquire " with the proceeds as they mentioned the money would be used for acquisitions... but unless we see a very big acquisition in the next little while, I think even the pumpers can accept that if you are diluting to raise money at a 10% discount to current stock price and you are doing it ONLY to cover your operating expenses, then things are not so perfect.
finallt please do not listen to banks and their target price. It means nothing. If CIBC is telling us stock is worth 9$, I wonder if CIBC is buying any WELL in their own small cap / growth portfolio... or just that it's a good buy for retail but Banks wouldn't touch it even with a 100% upside.
Well said LarryB. If the heap of red flags in this one are obvious to me then it should be to those who claim they're educated in finance. No such luck here though.
Yes, you're right on all of your points including your points regarding banks. They needed the money and most likely did the financing much sooner than they planned to because the air is coming out of the markets in rapid fashion. Even before the air was vacating the markets I was the first to say long ago they'd need to do a raise and of course the geniuses here said I was off my rocker...not the first time. But like Budd et al, I have seen this play too many times before.
Acquisitions? in their own words:
"
and for working capital and general corporate purposes." I've been wondering if they regret having technologies in their name now as I am sure their friends at HIRE "Technologies" (is there a theme here? :) ) are. Talk about a technical insolvency.