never been a buying opportunity type of Wavoid,
but I'm thinkin that here. The PP is 10% underwater ($10m under by %10 is some coin). Yes, they bought the warrants with that 10%, but it is still in the red.
I'm inclined to think that the company expects some new business, but am also inclined to think that folks underestimate how much new business they need. I'm inclined to think that if instead of this they announced a $1.5m deal that folks would be calling for $5 (or more) a share, but $1.5m is pennies. Dell revs could easily drop that much this Q. Historically Dell was about inventory control. They've gone private. Solms said ongoing Dell revs was clearing out legacy inventory. Private Dell is going to cut bait and clear the shelves (IMO).
Well run micro caps sell PPs into periods of comparative strength, do so in firm anticipation of noteworthy news in the following weeks (not months) and folks lick their wounds over the dilution and move on.
$1.7 at 10% below the placement seems like a decent entry point for a modest amount of speculative investment.
The above content is my opinion.
