LanOptics Raising Stake In EZChip - A Bullish Sign [View article]
This makes no sense. Existing LNOP shareholders are diluted and you think this is good? Sure it's good! Good for the EZ-Chip investors with an illiquid share who now have access to capital markets!
What is going to happen if all these new shareholders start cascading their liquidity into the market! You can't tell me they are not going to sell- otherwise why would they agree to the swap! What sort of lockup agreements are in place?
This is a meaningless event unless you examine the cost of issuing new shares and compare that against your expected performance of the company.
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LanOptics Raising Stake In EZChip - A Bullish Sign [View article]
What is going to happen if all these new shareholders start cascading their liquidity into the market! You can't tell me they are not going to sell- otherwise why would they agree to the swap! What sort of lockup agreements are in place?
This is a meaningless event unless you examine the cost of issuing new shares and compare that against your expected performance of the company.
What am I missing here?