FIT Secondary Offering,
Everyone should remember that FIT's initial downtrend started at their secondary offering.
Granted, if only looking short-term, share price should come down as more shares are printed. Theoretically, that is a constant PE viewpoint.
But investors should not be focused only on PE. They should be focused on Growth, and Potential for Growth. They should be focused on PEG, not PE.
Why would FIT go to the market for more money when they just went public? The only answer that makes sense is that they hatched a growth plan that requires more money to complete and it again makes sense to have excess cash that can be invested and yield a return-on-investment as opposed to borrowing any short-term money for the sake of paying monthly overhead (you know: salaries, inventory, utilities, property, suppliers, assemblers, et cetera).
And cash is always handy if you want to buy another small company for strategic purposes.
