As a long holder, I'd be very disappointed if they DIDN'T access the recent markets to ensure they have a safety net in place as they approach profitability. It makes holding through these events easier, not harder. After reading the 10Q, I finally have the feeling that they are all the way safe. If they were transitioning into this period still saddled with the debt, and watching the volatility on the sidelines, I would have sold out and just come back to swing trade it periodically.
Historically, they have been sufficiently restrained in their diluting even while on the verge of going under. Even while they went up to bat needing to hit an absolute grand slam to stay in the game. I can't imagine they'll suddenly run wild now of all times.
Regarding the IBank, which is the elephant in the room...I fear they may have gotten a little ahead of themselves with making the confident announcement they did. Like many of us, they probably saw the share price rocketing as a deserved and organic process. They are always ready to take it to the next level, and exude confidence while they do so, but I feel they were understandably overzealous here. We all were!
I'm not sure how many big name banks are looking into microcap telecommunication companies in our current market environment. Then again, telecommunication is usually perceived as a safe haven during cycles of inflation. Buffet himself has recently rotated a huge chunk into Verizon.(GET HIM ON THE PHONE NOW!) So who knows... we could have ten name brand banks or none.
Regardless, this is precisely the play I'm looking for going into the next two years. I'm something of an investment banker myself! ;)
