Tuesday, September 22, 2009

"Less is More" - at least when Lime energy raises money (LIME)

AlphaNinja - At Lime Energy, their slogan is "Less is More." I don't know if that refers to their profits, or their ability to tap the capital markets. Consider the chart below:

Lime Energy (LIME), a consulting firm focused on improving clients energy efficiency, announced a 5million share offering at $5.50 -->> that would be a 21% discount from yesterday's close and 31% discount from the $8.00 the shares traded at just a few days ago.

The terms of the offering show a truly gruesome 7.5% commission/expense related to the offering.

In the firm's defense, their operating results are bad enough that they may not have had a cheaper option for raising money. That said, the offering was far too attractive for the i-bankers, and far less friendly to regular old open-market investors.

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