one's belief that the CEO has a credibility problem
It's not a belief. It's a fact. He has missed far to many estimates to trust he will make the next. Yes, there is always that chance, you retain hope he succeeds. But he has a credibility problem, and it was self created.
preparations are for "a slumping share price" with that same investment, pure stupidity.
Not if you prepare for it. You can't believe there is no chance for additional dilution that will harm the share price. Now that would be pure stupidity.