I think you would probably classify me as one of those delusional longs. I still believe that this stock is going to do very well sometime in the near future.
I also know that barring any major announcements that this stock will be going down in value in the immediate future.
I sold off half of my shares before it dipped below .15. I will continue to hold on to the other half because you never know when a major announcement could happen. I also intend to buy back in with that other half at some point, but I will wait until I feel the stock has hit its new bottom.
No one likes dilution. It is possible that the new shares are just for levering a buyout, but even if that is the case the price will continue to drop because of the threat of potentially massive dilution. Then when dilution actually starts to happen (and barring major news, it will happen) the price will obviously drop even more.
This stock is going down, but like you said I think this ultimately could be a good thing. As Watts loves to repeat over and over again this company hasn't pursued their opportunities for revenues, they have not been proactive in finding income sources, they have missed opportunities. I do believe there are plenty of opportunities there though. Especially now with the Engel machines on the verge of completion. This stock will see a dip in price, but it should not last for too long.
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