Q: A big question for this one...LSPD has traditionally used it's stock as currency to fund it's growth by acquisition strategy. By nature of it's recent huge decline from it's highs, does this not now make any new growth very expensive and far more dilutive to current shareholders?
When the company is not making a profit and it's acquisition currency (stock) just took about $115.00 share haircut off it's highs, what's this going to do to it's ability to meet growth expectations?
Won't they either have to make smaller acquisitions which won't move the needle as much for growth rate OR have to issue more stock at lower prices, thereby further reducing the current value of the stock (dilutive to current shareholders) and does this not change the fundamentals of the story?
Do we know what they are doing to generate growth organically and what their expected growth rate would be organically (ie without acquisitions) until they can streamline their operations and hopefully become profitable? Would you add to this now, sell or hold?
When the company is not making a profit and it's acquisition currency (stock) just took about $115.00 share haircut off it's highs, what's this going to do to it's ability to meet growth expectations?
Won't they either have to make smaller acquisitions which won't move the needle as much for growth rate OR have to issue more stock at lower prices, thereby further reducing the current value of the stock (dilutive to current shareholders) and does this not change the fundamentals of the story?
Do we know what they are doing to generate growth organically and what their expected growth rate would be organically (ie without acquisitions) until they can streamline their operations and hopefully become profitable? Would you add to this now, sell or hold?