Update. WORRY. DOUBT. FEAR.
All three do not help your decision making. Especially with what is going on with ENVX.
First of all, and most importantly - I want to assure you that even though I love ENVX prospects, I am still DATING IT.
IF ENVX DOES SOMETHING THAT WARRANTS A SELL, I WILL SELL. I DO NOT CARE WHAT THE FUTURE POTENTIAL IS. ITS MY MONEY AND I WILL KEEP IT.
Latest News The latest news of an offering should not be a surprise. Heck, they've stated repeatedly that they would need to do an offering. Why?
In order to be able to show that they could meet increased demand for a large customer or customers, they have to prove they have the financial ability to purchase materials, fund labor, fund expansion. Spend money to make money.
They now have shown the INTENT to meet that requirement. Now they need to actually raise the capital.
A couple of things about that:
First, the last raise was placed entirely before they announced it. This raise is different as its a Shelf offering. Exactly as it sounds, they have filed with th SEC for the ability to raise funds and until the need to do so, they put it on a shelf. Read this transcript. Thanks to @EchoDaze for providing.
Second, if you look at the prospectus cover, they list multiple types of securities. Smart. They want to have the flexibility to raise money with the type of equity or debt that the capital providers demand.
Third, the two underwriters and book runners are heavyweights. Cantor Fitzgerald and Oppenheimer. Of the two, Cantor Fitzgerald is imo one of the absolute best investment banks out there. They are not staffed by shitbags and they don't do shitbag deals. I am very encouraged its not Citibank or Goldman. Those two are shitbags.
Finally, and this is important: THIS IS AHEAD OF SCHEDULE. From the above transcript, they didn't think they would need to do this until 4th quarter. And TJ clearly said they would only do if they needed machines and they would only need machines if their batteries were ahead.
Market Reaction While stupid, it is totally expected. The market is already planning for dilution even though no terms of the deal were provided (debt? equity? hybrid?).
Even if it turns out to be a dilutive equity raise, ask yourself this:
Would you, as a shareholder, rather own 10% of nothing or 1% of a successfully producing ENVX with large mainline customers????
Yeah, I thought so.
My plan is the same as it was before: trade shorter term duration calls and add to leaps if price retreats.
GUYS AND GALS - ENVX SAID THE 4TH QUARTER WOULD BE WHEN THEY STARTED ANNOUNCING DEALS, ETC.
Unless they totally operationally fail, which they still could, THIS IS THE LAST TIME I WILL BE ABLE TO BUY THIS STOCK UNDER $20.
I often hear that old sycophant from Omaha quoted: "Buy when others are fearful" or something like that. Well, here you go.
I ask myself this: do you want to be like retail and feed that part of your retarded brain or do you want to be successful????
Closing: THIS is great news.
I am not in love with ENVX and will sell if I see them failing or lying.
This still is the chance to make generational FU money.
I am NOT recommending this to anyone and even though I see great potential, it still will not be more than 25% of my total portfolio. Don't fall in love with this company. DO NOT.
But also, understand what just occurred and why. The management could not make this any clearer than they have.
And FFS, if you are worried, CTFD.