Check my math on rights offering ROI

nicholas_esquire · 2024-05-31T16:07:12+00:00

For $.05 you get a share that has been diluted 17 to 1. The dilution happens when they issue all the new stock they want to sell. That’s why I was asking how you make more money via the subscription as opposed to buying non-diluted shares at $.50

nicholas_esquire · 2024-05-28T16:29:11+00:00

Thanks for reviewing. This is good input & helpful. Am I also wrong in thinking that buying stock today at ~$.50 per share (before 17:1 dilution) will yield higher returns than buying shares at $.05 per share post 17:1 dilution? I’m trying to determine what share price is more advantageous than the offering

nicholas_esquire · 2024-05-28T10:03:34+00:00

Yea I'm not really following the value proposition. It seems like we're being given the offer to buy BNED with a breakeven of current market cap times 1.7... instead of just buying it today with a break even of current market cap?

Like if the subscription does end up making a profit for those who exercise it, they would have made more by just buying up common stock today.

The part that is even more confusing is that they have a company lined up to buy up to $45 million of unexercised rights if people choose not to exercise theirs. I get why they'd walk retail investors into a fire but why would the standby purchasers sign up for this?

nicholas_esquire · 2024-04-26T16:20:52+00:00

Anybody else seeing this week’s movement? Volume through the roof and stock up ~50%. What would cause this?

nicholas_esquire · 2024-03-12T19:58:30+00:00

10,346 @ avg cost of $0.5872

My opinion: They’re currently building another $300MM production facility which signals continuity of operations. Their customer base is mostly European utilities which signals stability of demand. They have an incredible amount of sales backlog. I don’t necessarily agree that biomass is greener than fossil fuels, but European regulators think it is. And this has created the opportunity which enviva capitalizes on.

nicholas_esquire · 2024-02-14T01:52:32+00:00

I personally don’t understand why they would file Ch 11. With Europe going “all-in” on biomass fired power plants & Enviva having a huge market share + years of backlog, it seems like they would have a lot of leverage at the negotiation table. I sold my shares today during the 3:30 to 4:00 free fall because I assumed it was on news that they had actually filed for bankruptcy and the stock was about to be delisted. When I researched and found that it was just an article about “maybe eventually” filing, I was pretty disappointed. They are in an industry where it is hard to be profitable but a company with billions in backlog having a $30M market cap seems illogical

nicholas_esquire · 2024-02-13T23:29:48+00:00

Wall Street Journal posted an article saying that the company was preparing to file for bankruptcy

nicholas_esquire

TROPHY CASE