Originally Posted by ibavly
Nts just dipped 10% on news of issuance of 20% of outstanding shares at a 20% discount. That seems like a pretty steep discount, but part of the rationale is to redeem high interest convertible bonds. If this mostly just cleans up the balance sheet it might cause a bounce back, although the $1.15 price might be a drag for the next month.
I really like how the market has responded today frankly. Those following close know that this means iChina still hasn't payed them yet. When faced with that, they could have gone asking for 3-5m and annoy the crap out of investors, or just take 12m and make their balance sheet rock solid for 3 years or more given the new much lower burn.
I like the timing of it well ahead of earnings, and I think there's some method to that too. The story with these guys is just one of extreme regulation and brutally long sales cycles. But those who get it in good are going to do great I maintain. The one sort of black swan would be them coming out on the call and saying China full on backed out or something of that nature. But with how much both parties have done to get to the point they're at now, I'd be pretty surprised to hear that. I'll actually write the rep now to find out what they may be willing to say.