Originally Posted by
Frostwind
Guys,
Just want to chip in my 2c worth:
I've never seen an IPO that extends deadlines like this... And the sentiment is shifting quickly from risk on to risk off, and the longer they drag on, the worse it would be... Mounting IPO cost aside, the market internals have weakened dramatically over the last few weeks.
You cannot take the 40c KCS' application at face value, as they get a lot of other benefits on top. So if they are willing to pay 40c for a share incl benefits, the market will likely be considerably lower than that.
Future dilution after KCS exercise of CB is also something that should be considered. If all goes well, it'll dilute the IPO buyers, and market price will adjust sharply lower when they exercise the CBs, as it always does to massive dilution. If it doesn't go well, it'll take KCS out as well.
I also don't like the fact that insiders are dumping shares by the millions at IPO.
Also this management has a track record of excuses and missed deadlines, I failed to see how a pending IPO can affect engineering development in any significant way and deadlines have been pushed out again.
The cost for a unit has also grown from 100K USD to 200K USD, so the market will be much smaller, at that price you can buy a micro helicopter, or some very advanced drones.
Now to the good part:
with such a steep price, they won't have to sell many units to generate a lot of profit :D