Totally agree with this view on CPSS Cliff. It also now becomes clear why they haven't been aggressively buying back stock yet either.
They'd be idiots to issue stock at these levels, so its likely they would hold off on that and primarily use this shelf for debt issuance. With the stock price so low, it doesn't make sense to use it for acquisitions either.
My guess is that management is using the shelf to register their newly minted options and recently exercised stock. Its a bit excessive and quite piggish of management to issue just over 1MM options to themselves and directors. Not only that, they have timed it a low point in the intermediate trading history. Look at where some recently exercised stock options were granted the last time they did this....around 1.5/share. They had to exercise those because of a looming deadline.
At least most of these options have to vest over a 5 year period. The directors get 150k options that can be fully exercised as soon as 11/19/15.
The exercise price for all these shares is 6.11. So, as of now they are all underwater....
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