$1.90 is a good price, and there is proof.
While it is fanciful to presume that a company losing money hand over fist with an empty treasury and a massive negative cash-flow that briefly rallies to a 52-week high on the basis of little more than hope about new management can then somehow print more than 10% of the company in the form of new shares and sneak them into the market at this 52-week high (ATM) or get a placement at this 52-week high (no discount) is great fun, but the notion reflects a fundamental lack of information or understanding regarding financial markets.
Each and every day of this brief rally is punctuated by episodes of significant share price vulnerability; indeed many here have remarked that they are trading the swings. To pretend that one can assemble a placement based on the peaks of those swings, or even the valleys of a very short lived rally is again a reflection of a fundamental lack of information or understanding regarding financial markets.
$1.9 is a good price, indeed it is a great price. Why is that? Because right here right now any person can buy shares AT A DISCOUNT to $1.90. That WAVX SP fell so completely below the placement price is a clear demonstration of fact, that the SP was tenuous at best. Management succeeded in locking in a price that when compared to any reasonable window of recent prices or indeed the current price can only be described as a good deal. When a placement occurs at a discount AND the price fails to fall to the level of the placement price THEN a placement is underpriced. LET ME SAY THAT AGAIN SLOWLY: IF the price does not fall to a level at or below the placement THEN then the placement was underpriced.
If the $1.9 price was such a steal … then it would seem folks here should be tripping over themselves to buy at a much better price than the private investors of the placement enjoyed.
Nothing in recent SP/Volume activity supports the notion that PP profits were locked in. Some? Sure. But plenty of new equity and the millions of dollars that printed it are in the red.
Wave’s fundamentals clearly demonstrated a clear need for some real money. Not some sort of $2m deal – that is only a bandaid. Wave’s current cash-flow statement is propped up mostly by one item that the company says is going away – soon. (dell).
Folks opine for the ATM instead …. The ONLY reason the SP is where it is at is because they laid off the ATM. They parked the ATM, built hope, and locked in a PP at $1.9.
Back up a month or two and tell me it was anything but genius. Real genius, not the phantom kind. Now, only now, can one invest in WAVX and know the doors will be open long enough for the stated plan to play out. So buy, sell, or …
(and yes, there are the warrants. the PP is stated to close June 17 .... at a PREMIUM to today's trading price. the warrants are the price for that PREMIUM)
The above content is my opinion.
