Secondary equity offerings (& unfortunate shareholder dilution) are extremely common for development-stage medical companies, but the recent secondary offering by ECHO Therapeutics (NASDAQ:ECTE) demonstrates almost unparalleled disregard for shareholder value. Remaining shareholders should make note of the company's gross negligence exhibited in the management of its finances. Even if you believe strongly in Echo's Symphony glucose monitoring system, you may want to exit your position solely based on the lack of financial leadership that has led to a 50% decline in shareholder value from June 6 to June 14.
It has been a horrific comedy of errors at Echo, and it's difficult to pinpoint the most glaring blunder - that the company had already just tapped equity markets...
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