AI
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| Alias Born | 06/08/2009 |
Friday, November 05, 2010 11:30:42 AM
LPH have shown they know how to build a new facility - so they have my complete faith.
I was looking at what they did last time... basically, they seem to spend almost 3/4 of a year after announcing it before they did the dilution ... think dilution was Q4 or 09 (don't quote me, bet GB knows
) and yet they were opening the facility in Q1 of 10. I hope I have that right. So, EPS was never compromised.
At this point the market cap is 370M (using 115M diluted)...the last facility was 37M so a 10% dilution - assuming all else be equal could give a 50% revenue burst over the 18 months or so ramping up. Certainly looking interesting.
Still, I wouldn't want to stop the run just now but the economics of the dilution are getting more attractive.
Some have said that they could do it from cashflow but it looks like it gets tied up in inventory etc - think they have 142 Million or so of cash + receivables + inventories + Advances to supplies.
rich
I was looking at what they did last time... basically, they seem to spend almost 3/4 of a year after announcing it before they did the dilution ... think dilution was Q4 or 09 (don't quote me, bet GB knows
) and yet they were opening the facility in Q1 of 10. I hope I have that right. So, EPS was never compromised. At this point the market cap is 370M (using 115M diluted)...the last facility was 37M so a 10% dilution - assuming all else be equal could give a 50% revenue burst over the 18 months or so ramping up. Certainly looking interesting.
Still, I wouldn't want to stop the run just now but the economics of the dilution are getting more attractive.
Some have said that they could do it from cashflow but it looks like it gets tied up in inventory etc - think they have 142 Million or so of cash + receivables + inventories + Advances to supplies.
rich
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