Please forgive the size of the script. I couldn't change it. If you want to put is on another thread please feel free.
and I think we are dealing with a bunch of ignoramus. Fast growth and undercapitalization is the most common cause that derails a firm. Increasing the capacity may be necessary for a variety of reasons some of which have been mentioned in the various threads. I think the most important reason may very well be that the customers want some warranties about the ability of the firm to deliver before they show their intentions to their present suppliers with all the unpleasant concequences. If so, then the management has three ways to finance such an increase in the capacity. Ask for a down payment from an OEM, borrow and issue more shares. The first two come with a cost but the third is free and advantageous-particularly at these share prices as long as the company has good prospects and have convinced the market about them. There is nothing bad about it and it serves the company well. The price of the stock should not be affected. If anything it should have gone up given the reasons for this expansion. Again, there is the issue of transparency. But this has nothing to do with the price it might, however, be part of their strategy not to broadcast their intentions to their competitors. The longs shoot themselves on the foot by making a great deal of fuss about all this and fall in the hands of the shorts who love to badmouth the firm for any reason whatsoever.