I always hate it when a company issues more stock when it is near its low (down the tubes) than when it is near its high.
In 2006 they could have sold shares at $15 and the high for the past year was over $5. Now it is under $2. When would YOU think it is rational to sell additional shares?
I am NOT saying the company is on its last legs.
In other cases a company has a very high dividend yield and issues more shares when they should be able to borrow money at a rate below the dividend yield.