Jun. 4 at 7:49 PM
$NUTX I think the proxy filings caused a major misunderstanding that has created a fantastic buy opportunity.
The board is bascially asking for authorization to add 1.1M shares (~20% of current float) to the equity incentive plan, and to allow up to 5% more per year after that. On the surface that might seem aggressive (especially if you just read the headlines as most people seem to do). But if you actually read the numbers in Proposal 3, they say they expect to issue only around 30,000 shares over three years, and factoring in forfeitures, the net dilution would be about 24,000 shares next year - that’s just 0.43% of the float.
So the proposal gives them a maximum runway, but their actual usage is minimal.
Anyone selling currently is giving away free money in my opinion. I'll load up some more for sure. The Russel3000 rebalancing will take place soon and more funds will start adding the stock which will drive the share price up. Later this year we might also see a buy back.
