well in 2012 they issued 30m shares for about $15m cash at a p/e of 0.5/0.7= 0.71. That p/e implies that the cash raised must bring a return of 1/0.71 = 140% in order to be accretive, right? One can see right there that the dilution is far from being accretive. B/c even if all that cash is being used in their most profitable segment which is fish farms with a typical return of 40-50% (based on a payback time of 2-2.5 yrs acc. to Solomon per your quote), it's only about 1/3 of their cost of capital. So it's a complete nonsense to issue financing shares at such a ridiculously low p/e (which intuitively anybody can see w/o much reasoning).
IOW in order to be accretive they need to issue shares at a p/e of greater than 1/0.4= 2.5 (based on a typical return of max 40%). So if they expect to earn $1 per share in 2013, shares can only be issued at a min pps of $2.5 in order for the dilution to be accretive. Am I correct?
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