I have owned a company for a couple of years that had a nice run in June but has dropped back. They have done some creative financing a couple of times and I believe S-8s have been part of it. They have a VERY low float, but keep doing PPs and warrant deals that always concern me about dilution. The company is NTWK, and they have been really struggling, but keep promising that they are turning around.
The reason I am posting here is that there has been some mention of an S-3 that is getting worked out right now. There is specualtion that this will cause a major run within the next month once the shares become unrestricted, however, I do not know how this is being worked out. If anyone could explain this situation to me and if the rumors make sense, I would love to be educated. It is trading now at 2.30 after a 5:1 RS a few months ago and the investors in this S-3 agreement (Maxim group) are evidently in at 2.76.
Speculation says that once these shares become available, which is supposedly sometime before Feb. 1, this stock should run to around $4. I'm not sure I believe that, and I was hoping some of you guys here could look at it and tell me if you find anything of interest. I'm in at a pretty big loss right now. If this is not the appropriate board to address this stock, could someone direct me to the best board on IH?
