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Doesn't a sale of new stock generally imply that the company believes its shares are overvalued? Great timing in any case, this is the time to shore up on capit
by joonix 13y ago
Doesn't a sale of new stock generally imply that the company believes its shares are overvalued? Great timing in any case, this is the time to shore up on capital to make sure they can stick around a long time.
- SatvikBeri 13y agoIf a company with huge cash reserves like Google was selling new stock then yes, I would assume they thought they believed their shares were overvalued. But in general it's the same as taking VC investment. It might just mean the company believes they can use the cash in a productive way, or that they need cash to continue operating.
- bryanlarsen 13y agoOTOH, Elon Musk buying $100 million worth of shares is a very strong signal that the shares are under valued. It's probably not a coincidence that those two countering signals are being sent at the same time.