Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] question on secondary offering
Date: Wed, 27 Mar 2002 16:27:35 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_00EC_01C1D5AC.4DB0AD00 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Mona, You can always read the offering prospectus at the SEC/Edgar site. http://www.edgar-online.com/bin/edgardoc/finSys_main.asp?dcn=3D0000912057= - -02-011434 In this case, INVN is offering 2.5m additional shares in a primary = offering (proceeds to the company). Another 500K are offered by current = shareholders, so these proceeds do not go to the company itself. I = imagine INVN is in quite a pickle these days---capacity pushed to the = limit due to the bevy of new orders for bomb detection systems in = airports around the world.=20 In general, a stock's price will decline once the new shares are pumped = into the market because the additional outstanding shares will have a = dilutive effect on EPS. However, the price performance over the long = term will be determined by the management/company's ability to utilize = the proceeds to increase their overall earnings, offsetting the initial = dilutive effect. No telling if INVN has what it takes to make that = happen. I don't see anything good in the recent price/volume action = right now with 3 distribution days in the last 10 days. Katherine ----- Original Message -----=20 From: Mona Guarino=20 To: canslim@lists.xmission.com=20 Sent: Wednesday, March 27, 2002 7:01 PM Subject: [CANSLIM] question on secondary offering INVN priced 3M shares today in a secondary at $36.50. It had been = trading over $39. AskIBD says that a public offering of additional shares is generally positive for a stock. But also says that a stock offering increases = the number of shares outstanding, which decreases earnings per share. EPS = is one the main drivers of a stock's price. But on its own, an offering is = not a sell signal. It depends on how large the offering is and how investors = react to it. The company may have credible plans for the additional capital. = If your stock continues to act well, there's no reason to sell it. I can't provide details at the moment on number of shares outstanding, = etc as I am having problems reaching the DGO site. Wondering if someone would care to comment onf secondary offerings in general or INVN in particular? = =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D (253)983-1531 (voice) Design21 Internet Solutions (877)576-6172 (toll-free fax) Mona Guarino webmaster@design21.com 10209 Bridgeport Way SW http://www.design21.com/ Lakewood, WA 98499 = =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D - -To subscribe/unsubscribe, email "majordomo@xmission.com" -In the email body, write "subscribe canslim" or -"unsubscribe canslim". Do not use quotes in your email. - ------=_NextPart_000_00EC_01C1D5AC.4DB0AD00 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2600.0" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Mona,</DIV> <DIV> </DIV> <DIV>You can always read the offering prospectus at the SEC/Edgar = site.</DIV> <DIV><A=20 href=3D"http://www.edgar-online.com/bin/edgardoc/finSys_main.asp?dcn=3D00= 00912057-02-011434">http://www.edgar-online.com/bin/edgardoc/finSys_main.= asp?dcn=3D0000912057-02-011434</A></DIV> <DIV> </DIV> <DIV>In this case, INVN is offering 2.5m additional shares in a primary = offering=20 (proceeds to the company). Another 500K are offered by current = shareholders, so=20 these proceeds do not go to the company itself. I imagine INVN is in = quite a=20 pickle these days---capacity pushed to the limit due to the bevy of = new=20 orders for bomb detection systems in airports around the world. = </DIV> <DIV> </DIV> <DIV>In general, a stock's price will decline once the new shares are = pumped=20 into the market because the additional outstanding shares will have a = dilutive=20 effect on EPS. However, the price performance over the long term will be = determined by the management/company's ability to utilize the proceeds = to=20 increase their overall earnings, offsetting the initial dilutive effect. = No=20 telling if INVN has what it takes to make that happen. I don't see = anything=20 good in the recent price/volume action right now with 3 = distribution days=20 in the last 10 days.</DIV> <DIV> </DIV> <DIV>Katherine</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dwebmaster@design21.com = href=3D"mailto:webmaster@design21.com">Mona=20 Guarino</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Wednesday, March 27, 2002 = 7:01=20 PM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] question on = secondary=20 offering</DIV> <DIV><BR></DIV>INVN priced 3M shares today in a secondary at $36.50. = It had=20 been trading<BR>over $39.<BR><BR>AskIBD says that a public offering of = additional shares is generally<BR>positive for a stock. But also says = that a=20 stock offering increases the<BR>number of shares outstanding, which = decreases=20 earnings per share. EPS is one<BR>the main drivers of a stock's price. = But on=20 its own, an offering is not a<BR>sell signal. It depends on how large = the=20 offering is and how investors react<BR>to it. The company may have = credible=20 plans for the additional capital. If<BR>your stock continues to act = well,=20 there's no reason to sell it.<BR><BR>I can't provide details at the = moment on=20 number of shares outstanding, etc<BR>as I am having problems reaching = the DGO=20 site.<BR><BR>Wondering if someone would care to comment onf secondary=20 offerings in<BR>general or INVN in=20 = particular?<BR><BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D<BR>(253)983-1531=20 (voice) Design21 Internet=20 Solutions<BR>(877)576-6172 (toll-free=20 fax) Mona=20 Guarino<BR><A=20 = href=3D"mailto:webmaster@design21.com">webmaster@design21.com</A> &n= bsp; =20 10209 Bridgeport Way SW<BR><A=20 = href=3D"http://www.design21.com/">http://www.design21.com/</A>  = ; =20 Lakewood, WA=20 = 98499<BR>=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D<BR><BR><BR>-<BR>-To=20 subscribe/unsubscribe, email "<A=20 = href=3D"mailto:majordomo@xmission.com">majordomo@xmission.com</A>"<BR>-In= the=20 email body, write "subscribe canslim" or<BR>-"unsubscribe = canslim". Do=20 not use quotes in your email.<BR></BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_00EC_01C1D5AC.4DB0AD00-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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