Seeking Alpha
  • FocalPoint Analytics
    (PSEC) announces offering of 35M shares. PSEC is down.
    11/2/12
    Reply (8)
    • Mercy Jimenez: Thx FPA and also appreciate the nor'easter warning possible for mid-Atlantic and New England states by Election Day through next Thursday.
      11/2/12
    • jimjesjus: Is it interesting the secondary came before the earnings due on Nov. 8?
      11/2/12
    • FocalPoint Analytics: Interesting point jimjesjus. If quarterly results were bad, they might want do the offering in advance of the results.
      11/2/12
    • FocalPoint Analytics: However, if the quarterly was good, AND the offering is being made to big holders, they could sell on the offering news....
      11/2/12
    • FocalPoint Analytics: The price drops - the discount is applied and they pick up millions of cheap shares. Now the good quarterly is reported and the stock pops.
      11/2/12
    • FocalPoint Analytics: I really don't like the size of the offering because I it means so much more cash will be needed to service the dividend.
      11/2/12
    • FocalPoint Analytics: So this huge offering might signal a lowering of the dividend. That might cap the stock price at a lower level to maintain a high % yield.
      11/2/12
    • jvix: 11.10 price seems low to me, really knocked down the share price. But is close to the last offering at 11.15
      11/3/12
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