sound familiar...
And that's why we're here today. Tuesday, Mamma announced yet more dilution in the form of a 1.5 million share private placement -- plus the option to grab another 600,000. There you go, kids. Your piece of the action just got 10% to 15% smaller.
Investors responded by dropping the shares 8.5%. I can't blame them. They're probably getting tired of sharing their meager goodies with overgenerous insider grants and favored newcomers. And for what? How about some "aggressive" pursuit of acquisitions and mergers? Mamma was already sitting on $4.5 million in cash, with a new-and-improved, high-margin business model. You'd think she'd want to take a breather, or at least spend a little time making the easy bucks. Apparently not.
The dilemma for investors is whether to join Mamma for one wild ride. So long as she's packing a P/E ratio north of 180, dragging in lumpy revenues, and giving my cookies to the neighbors, I think I'd have to sit this one out.
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