News Flash: Intelligence spotted on iFlub. This pe
Post# of 72440
I Need Help Wednesday, 11/13/13 03:49:13 PM
Re: Ovidius post# 45924
Post # of 45928
I've had similar thoughts on the Aspire financing . The main advantage to the company is that funds can be drawn when needed. This gives management some control over the price of shares delivered. Obviously, the higher the share price , the better it is for CTIX. **One reason why longs should quit constantly be hoping for cheaper prices to add into their long-term positions.** In the long-run, long-term, investors should be hoping and advocating for higher share prices. I won't argue the point, because it is such an obvious one. How many small caps go out of business because management did not respect and cultivate the share price. Maybe PolyMedix????
A low share price is not in the best interests of CTIX, investors, or me. Unless you are shorting. But, good investors do take advantage of dips. I always prefer to buy on pull-backs versus run-ups.
Despite what some may say, good management should be concerned with stock price performance. Even for science based companies. "Poor management trumps good science."
My guess is that management really is expecting the share price to rise. Thus, their Aspire deal is less problematic. If the price continues to fall, the Aspire deal is more of an issue.
I do trust Leo. I believe he is making the best choices available to him. Knowing what he knows. Of course, no one is infallible, bad things can happen. But, I give him the benefit of the doubt. He has outperformed my expectations to date.
I agree with you that Aspire structures its deals to make money. Other options for financing could include warrants for share purchases to current investors, or some other structured deal. But, from my observations, small caps always take a hit when financing or dilution is announced or discovered, even if it is in the best interests of the company. The only counter is significant good news, and a communicative management. Nothing wrong with promoting the company, such as at the upcoming Partnership Conference.