Yup, a 1:40 RS is announced (as of several days ago).
I'm really disappointed in this one. I patient, waiting out the long, slow decline for the SP to drop to 7 cents before I jumped in, then the bottom dropped out. Is there any rational reason why the SP should go from 7 cents to 2 cents, almost overnight?
I realize RS can be bad news... Have they tilted their hand regarding how much more they plan to dilute?
Looking back at outstanding shares, as of end of fiscal year:
2008: 379M
2009: 454M
2010: 626M
current OS: 787M
So, dilution may account for a ~2X drop in sp over past 3-4 years, but 17X drop? Something doesn't add up. Either these shares are an incredible deal now, or the company is going belly-up?
Thoughts?