Soverytired
Well-known member
- Joined
- Jan 30, 2006
- Posts
- 1,572
Maybe this is a better approach:
Mesa is currently a penny stock. It's attracting a different kind of investor now . . the kind of investor that favors day-to-day volatility over quarterly or annual profits. There are plenty of day traders out there willing to pick up a cheap stock, and they'll pick up the additional shares being issued.
So .. . short term, Mesa may well make enough cash to meet it's 32 million dollar payment. The price will be a dilution of the already low stock price, and the institutional investors are going to flee. Which will depress the stock price even more.
Bad news all around. I wonder if Mesa is deliberately lowering it's stock price hoping for an outside takeover bid? I'm sure the CEO & Co. will then be able to rely on their golden parachutes to survive, which they might otherwise not in the case of a bankruptcy.
Mesa is currently a penny stock. It's attracting a different kind of investor now . . the kind of investor that favors day-to-day volatility over quarterly or annual profits. There are plenty of day traders out there willing to pick up a cheap stock, and they'll pick up the additional shares being issued.
So .. . short term, Mesa may well make enough cash to meet it's 32 million dollar payment. The price will be a dilution of the already low stock price, and the institutional investors are going to flee. Which will depress the stock price even more.
Bad news all around. I wonder if Mesa is deliberately lowering it's stock price hoping for an outside takeover bid? I'm sure the CEO & Co. will then be able to rely on their golden parachutes to survive, which they might otherwise not in the case of a bankruptcy.
