A shelf offering does not have to be bad. It can simply gain flexibility. Or it can signal an acquisition coming,. It does not necessarily mean dilution to price to book nor earnings per share. Morinda was highly accretive.
The conference call is coming more into focus. The imminent news is out with four positive announcements: loan and credit line from a major institution at competitive rates, $12+M cash from building sale, Hudson, and Walmart, and a fifth that looks to prove positive as well (shelf offering).
Can only assume there is more to come.
The 2019 EBITDA guidance allowed for leeway for marketing OpEx, which was reinforced in today's announcement. This makes perfect sense, as Marley Mate's successful introduction is likely crucial to Walmart taking on more products.
Too bad we can't get the short interest figure more frequently, because with days like today, the days to cover is <1. Action appears that while a whole mess of shorts have covered, other haters may have taken new positions.
In the longer term, I think the shares will act inversely to the CEO's over exuberance, which was toned down on the last call, imo, for him. Next up is beating guidance. I felt that guidance was conservative, a 180 degree departure for the CEO. We'll see. Q1 will be reported in just one month, and if like the last call, Q2 guidance will be given, this time including Walmart and Hudson.
