NOT DILUTION - Market didnt understand this.
They read this wrong. This is straight out of the CEO's previous playbook. They JUST completed 3 new acquisitions and have several others they are negotiating.
Every time they make a new acquisition, the CEO will structure it as part cash + part stock swap at the closing. The owners + mgmt of the new company will swap their companies stock for TLSS stock / options. Why? for two reasons:
1) Less cash outlay for TLSS (SMART!!!)
2) In the end, this is a better deal for the owners and their Mgmt teams. They know that they can impact the stock price by increasing revenues + profitability. What TLSS brings to the table are the tools to do just that - thru their extensive contracts with $AMZN AMAZON PRIME and others. With each new acquisition, comes better economies of scale, new territories to push into, increasing revenues for TLSS, and ultimately much better profits. For the new units being acquired, being heavily incentivized gives them the opportunity to make more money in the long run. John Mercadante is WELL KNOWN in the industry and has lots of contacts. For God sake, he built Coach USA from the ground into the LARGEST corporation of its kind, which then sold for Billions. Believe me, these folks are interested in being a part of his new venture and the Amazon Prime delivery growth engine. In 3 short years, John and his team acquired nearly 80 companies while at Coach USA, and he's doing it again. So don't be surprised if he is giving them pennies on the dollar stock options. What we are getting in return is more value and more revenue, that equates to better than a $1 for $1 trade. He is all about building stockholder equity. With each new acquisition, our stock market cap is going up by the value of the asset and revenues it brings in, so this is NOT dilution!
I have faith in John Mercadante and Doug Cerney, because when they were the core team at Coach USA that delivered huge returns for me as a stockholder. I was able to sell my shares for nearly $50 in just 3 short years. Penny flippers and day traders here are idiots. I guess one good thing is they give us dips to buy into LOL. This is a long term hold that will reward those very well who hold.
