The story is here.
This is bullish long term in my opinion as it funds coal based acquisitions and allows for money for NPCC ramp up. It signifies the demand for their products and the fact that perhaps they see some attractive coal chemical acquisition targets.
Short term there remain questions such as how many shares and what price etc. I don't have time to add more here but I will post more when I have time to do it well. Probably not until this weekend...
For now it may be wise to wait and see. If the stock passes the major moving averages with volume (see stock chart) I will buy... I don't see this as likely until after some more announcements are made.
I did not see this coming and they were asked last quarter if they were going to offer more shares and they said no. However, the convertible notes is better than more shares outright and it also appears they plan to expand more/ need more for acquisitions then previously thought... which may be a very good thing long term...
*update: I did buy some at 8.01. I didn't expect the price to drop this much... if a longer term window is taken, given the recent developments and the long term quality of this company SDTH remains very solid... As a hedge I will wait to see what happens before I would add more... I didn't expect to buy today but when opportunity strikes plans can change in a second...
This blog is for informational purposes only. It does not give investment advice.
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