Listened to the conference call a second time. It's chock full of good news:
Two new fish contracts to be announced, one this quarter, which means within 5 weeks
Two new cattle contracts to be announced, one this quarter
One new equity stake in restaurant operations, with guaranteed customer for beef
Distribution and marketing network, retail, and import export all commencing
$.68/ basic share used conservative assumptions
$145M Revenue essentially reiterated (2.5x - 3.0x 2011 = $130M - $156M)
Equity stakes in fish farms bought at cost
Rapid expansion of fertilizer, aiming at much higher prices (and margins?)
Upgrading IR efforts
to name a few.
The most encouraging may be Solomon's confidence in the share price getting to AMEX minimum acceptable -- perhaps $1.50. I just wonder if behind the scenes he's not only confident of long term shareholder retention, but also may have positive feedback from JF and other Sweden groups as well as other institutions, as uplisting/dual listing nears.
The ROI on the marginal cap ex coming from equity financing may or may not be what we'd hope, but the overall ROI is simply phenomenal. So, I don't see dilution as a problem to share price; I'm not too sure that dilution is even an appropriate word, particularly strategically.
Share overhang may or may not be a problem, as well. We simply cannot be sure if new shares will be sold; in fact, Solomon gave some support to the notion that they won't.
Clearly, many people don't see it this way; maybe they should just sell, leaving more shares in stronger hands.
AI
