Last week KQ and it's debtors, primarily the government and banks, agree to convert their debt into equity this will lead to the current stock being significantly diluted. In the long term though this should be good for the company and it's shareholders giving the company and it's management more room to maneuver as they as continue to nurture it to recovery. No details of how much dilution is expected have been released.
Despite this, the stock has reacted sharply to this dropping more than 16% in the last 4 days. This leads me to ask a couple of questions:
1. How much do you think the company stock will be diluted by(I'd wage 1:3 or 75%) and how will that affect the price long term?
2. When do you think this price will bottom out?
3. Is this the time, this price decrease, or would you wait for more details about the dilution?
4. Anyone in government want to give us the inside scoop?
