The distribution, marketing, and retail divisions were always integral to Solomon's vision. He reiterated that in today's call, citing them as a distinct competitive advantage over possible future competitors.
He also said these divisions not only provide vertical integration, but also arm the import export branch, starting right away with the Norwegian fish imports.
Solomon saw an opportunity to initiate these vital segments a little quicker than anticipated at the outset of 2012, imo.
I think this may explain the timing of share issuance vs. shares being retired.
I think this also explains why the vast capital development expenses are necessary.
This is a company with $50M in sales, spending $100M to grow sales to $150M in one year!
Share overhang may well be an issue. We just have to trust that adding liquidity and new IR efforts -- as well as phenomenal fundamental performance -- will eat up shares.
Dilution may well be a completely inappropriate term. In fact, even at a p/e of 1, the share issuance may be accretive to eps. Total cap ex obviously generates mega return on investment. Even if the marginal cap ex funded by share issuance is not directly and immediately accretive, it is fairly clearly strategically accretive.
