Q: Please your comments on the recent financing through shares at 20% below market price. Future prospects? Good value at current price?
5i Research Answer:
Please see this answer. A discount is not uncommon in a financing. At 33X earnings the cost of capital is low due to the high valuation. The stock has done well and prospects good. EPS is expected to rise more than 30% this year and the balance sheet is strong. We would not call it cheap but if it can meet growth expectations we would expect the stock to do well still.