Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Any common trading patterns after a secondary offering?
Date: Tue, 19 Nov 2002 15:21:37 -0600
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This is a multi-part message in MIME format. - ------=_NextPart_000_00FC_01C28FDF.5A29C100 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Hi Ian, I've read financial studies that conclude that in the near term, a stock = will fall on the secondary offering while the market absorbs the = additional shares. In the long run, however, the stock performance = depends more on the ability of the company to expand their = revenue/earnings. In other words, the same thing that creates the = underlying value for the shareholders in all cases. If the offering is a = primary, where funds actually go to the company, it becomes particularly = important, as the investing community looks for evidence that the = company has effectively utilized the funds for growth. I can't be of any help on the near-term trading patterns, as I haven't = seen any specific studies on the phenomenon. I've uploaded a chart of = BVF, which we discussed here on the CANSLIM list last year about the = time they announced their secondary offering (approx mid-November). From = what I've observed personally, this is a pretty typical chart pattern. = See it at: http://WallStreet-LLC.com/canslim/BVF111902.JPG Katherine - ----- Original Message -----=20 From: Ian=20 To: canslim@lists.xmission.com=20 Sent: Tuesday, November 19, 2002 9:49 AM Subject: [CANSLIM] Any common trading patterns after a secondary = offering? i all: I was wondering if anyone had any real experience following stock = trading patterns after issuance of a secondary offering? What is the typical = pattern after the initial volume surge? Assuming that CANSLIM fundamentals, = and quarterly results are strong, will there be a lag before a price move? = Is it goof or bad for the near-term price action? Does it matter if the = pricing was a little below or above the previous days close? Is there = something to watch for on volume? Any input would be appreciated. Than you, Ian - -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_00FC_01C28FDF.5A29C100 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 6.00.2800.1106" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Hi Ian,</DIV> <DIV> </DIV> <DIV>I've read financial studies that conclude that in the near term, a = stock=20 will fall on the secondary offering while the market absorbs the = additional=20 shares. In the long run, however, the stock performance depends=20 more on the ability of the company to expand their = revenue/earnings. In=20 other words, the same thing that creates the underlying value for the=20 shareholders in all cases. If the offering is a primary, where funds = actually go=20 to the company, it becomes particularly important, as the investing = community=20 looks for evidence that the company has effectively utilized the funds = for=20 growth.</DIV> <DIV> </DIV> <DIV>I can't be of any help on the near-term trading patterns, as I = haven't seen=20 any specific studies on the phenomenon. I've uploaded a chart of BVF, = which we=20 discussed here on the CANSLIM list last year about the time they = announced their=20 secondary offering (approx mid-November). From what I've observed = personally,=20 this is a pretty typical chart pattern. See it at:</DIV> <DIV> </DIV> <DIV><A=20 href=3D"http://WallStreet-LLC.com/canslim/BVF111902.JPG">http://WallStree= t-LLC.com/canslim/BVF111902.JPG</A></DIV> <DIV> </DIV> <DIV>Katherine</DIV> <DIV> </DIV> <DIV>----- Original Message ----- </DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Dianstm@shaw.ca href=3D"mailto:ianstm@shaw.ca">Ian</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> Tuesday, November 19, = 2002 9:49=20 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Any common = trading=20 patterns after a secondary offering?</DIV> <DIV><BR></DIV>i all:<BR><BR>I was wondering if anyone had any real = experience=20 following stock trading<BR>patterns after issuance of a secondary = offering?=20 What is the typical pattern<BR>after the initial volume surge? = Assuming that=20 CANSLIM fundamentals, and<BR>quarterly results are strong, will there = be a lag=20 before a price move? Is it<BR>goof or bad for the near-term price = action? Does=20 it matter if the pricing<BR>was a little below or above the previous = days=20 close? Is there something to<BR>watch for on volume? Any input would = be=20 appreciated.<BR><BR>Than you,<BR><BR>Ian<BR><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_00FC_01C28FDF.5A29C100-- - - - -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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