On Friday, February 28, 2014, Magic Software Enterprises, Ltd.(NASDAQ:MGIC) priced a six million share secondary stock offering at $8.50 per share, providing investors an opportunity to buy shares at more than a 10% discount to the previous day's closing price of $9.49. I suspect the stock offering came as a surprise to many MGIC investors, given that the company is virtually debt free and had over $35 million in cash and investments at the end of 2013, or roughly $0.94 per share (pre-offering). Further, MGIC initiated a dividend policy in September, 2012, pledging to distribute up to 50% of its annual distributable profits. However, MGIC has been an active acquirer of businesses over the years and has turned...
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