Sorry you took it that way.
I'd be happy to change my thoughts on the equity raise (not total cap ex) helping the company in any material way, ever relating to earnings, if a cogent argument were ever shared.
However, I do agree that we don't know all the behind the scenes facts, so Solomon deserves the benefit of the doubt. This applies to the past, including the recent share issuance. And it means that he has to have some level of cash, no matter what.
Going forward, I think Solomon has had plenty of time to see the road ahead, as well as the dilution of his earnings per share and the effect of share overhang on the pps.He's had time to plan differently. If this level of issuance happens again in 2013, then he deserves no such benefit, imo.
It is perhaps true that all he/have has/have to do is suffer through this latest selling tranche, depleting all financing shares. Then he (better yet, new, real IR) issues a press release or two about new progress and preliminary earnings leading to the FN listing where share demand will not meet equal supply: essentially the breathing room RD is talking about.
Fact is, there have been many allusions to alternative means to grow. So I continue to give the benefit of the doubt. My consequence is also consequential (nice phrase).
I just don't see the benefit in saying the dilution is justified in any economic way, as it demeans the credibility of company positive statements that are true.
AI
