Twetch ·
I have a sell order in for market open. Hope to jump back in soon. $TAALF
Twetch ·
Dilution of existing shareholders is usually a bad thing for price. Using the proceeds to reduce debt and expand is a positive. BSV moved up $5 since the close yesterday so that’s a positive. Therefore my educated opinion; 50% chance Taal number goes up.
Twetch ·
Thanks. I intended to hold long - maybe Ill cancel my sell order. The offering is significantly above current price and blockchain stocks are up 12% in premarket, so maybe that will be enough to prevent a tank.
Twetch ·
I can’t advise you to cancel or buy because I have no idea what will happen day-to-day as the markets are so irrational. My bet is long term as I am convinced they are the best play in this space, way better than even BSV.
Twetch ·
I understand. My intention was a long term investment anyway. I may just buy what more I can afford if it drops some. It does swing rather dramatically from day to day.
Twetch ·
The release says $4.6 per share to a max of $40m with option of 1:2 further buy within 3 years. So a max of 52% increase in shares possible for Taal over this 3 year period. I look at this as a sign to increase my Taal stack by 52% so I’m not diluted.
Twetch ·
So the possibility is a circa 52% increase in the number of shares within 3 years. Will this mean current shareholders decide “I need to buy another 52% more shares to prevent dilution” or will they decide “I need to sell to prevent being diluted”?
Twetch ·
Cal is now “all in on BSV” but this offering is still proceeding. Is this a contradiction? Hard to tell as it can be argued the more people who own a stake the greater the strength of the company.
Last few months I have suspected a dilution was coming.
Twetch ·
If I could perfectly execute it, I would sell to prevent dilution & buy more than I own now at diluted price, still maintaining a long position. That can be hard to pull off. I've already screwed myself some trying to get cute with price action prediction.
Twetch ·
link to offering? i can't see it on taal.com
Twetch ·
https://www.newswire.ca/news-releases/taal-announces-marketed-public-offering-of-up-to-40-million-866380411.html
Twetch ·
I wonder if the CAD $4.60 is too low? Imagine if BTC goes up hence moving BSV to $210.. How can Taal go up 10-15% on its current close of CAD $5 when the new offering is $4.60? The so-called floor of $4.60 could actually turn into an anchor. Let’s see.