LEXG – Whether these kinds of financing deals are good for the company in question or not, I dislike them because they greatly increase the amount of DD needed to place a value on the stock. As a result, I tend to avoid companies that engage in these kinds of transactions.
In the case of today’s LEXG deals, the additional “entropy” is especially great due to the contingencies for rights offerings.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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