Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] question on secondary offering
Date: Thu, 28 Mar 2002 08:51:39 -0500
Next Article (by Date): Re: [CANSLIM] BRLI "Tom Worley"
Previous Article (by Date): Re: [CANSLIM] chbs "Tom Worley"
Articles sorted by: [Date]
[Author]
[Subject]
Hi Mona, Hard to believe this was a sleepy eyed flat line base at $4 right before 9/11, and since has nearly hit $50!! As a general comment on primary/secondary offerings after the IPO, the market generally tends to sell off the stock from the time of the announcement of the offering until the offering is complete. That may be why they finally priced this one $3 below market closing, but also suggests weakness in the stock. Q4 results clearly show that their sales, and earnings, are increasing rapidly. Key will be what they do with the portion of proceeds from the offering that the company receives. Remember that the newly issued shares (2.5 mil) will be counted on a "weighed average" basis in calculating Earnings Per Share. So if they put the money to work quickly, and it results in near immediate sales and earnings growth, then the dilutive effect of the new shares is partially, or completely, mitigated by increased net profits. Tom Worley stkguru@bellsouth.net AIM: TexWorley - ----- Original Message ----- From: "Mona Guarino" <webmaster@design21.com> To: <canslim@lists.xmission.com> Sent: Wednesday, March 27, 2002 8:01 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? ======================================================= (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 ======================================================= - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Date): Re: [CANSLIM] BRLI "Tom Worley"
Previous Article (by Date): Re: [CANSLIM] chbs "Tom Worley"
Articles sorted by: [Date]
[Author]
[Subject]