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advalorem

10/22/09 7:10 AM

#240 RE: Rawnoc #238

Rawnoc - I disagree with all of your ideas. Their core business - albeit cyclical - is incredibly profitable. PIPE deals are favorable to one party - the dealer.

If there is one business action I am not concerned about with RODM is their ability to structure a private placement of debt, stock (preferred/common), and warrants. That's what they do for a business, and they know how to do it well.

I believe they may use the funds for anti-takeover reasons; build out foreign operations (ie on-site inner Mongolia, Brazil - the growth markets) to have a presence other than the presentations or on a "set up a financing meeting" deal.

The insiders selling is meaningless, they still hold huge amounts of stock. They should be selling after the run-up for tax purposes, diversification.

Just my thoughts...
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acrazjo

10/22/09 7:31 AM

#241 RE: Rawnoc #238

Remember when I mentioned dilution or something of the sort with a company like this. You scoffed but it has a much better possibility now. Still a good business though and I like the stock. Joe
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budge

10/22/09 8:08 AM

#246 RE: Rawnoc #238

it's more likely option 2) egos demand going after bigger deals.