Elvira, the CEO of AT Pharmaceutical Ltd., has hired Dome Financial Inc. to advise her on issuing new stock. Her company will need to issue more stock soon to finance the development of a new product— a Hair Growth formula. Elvira has noticed that, on average, the stock price of pharmaceutical companies is higher in the spring than the rest of the year. She would like to issue the Hair Growth stock in the spring to obtain the highest price possible.
Given your understanding of the efficiency of the Canadian market, what advice do you have for Elvira regarding the timing of the new stock issue?