• Ocean Man
    Five companies announced secondary offerings tonight: $LRE, $TICC, $CMLP, $HEP, and $TWO. Earlier today $CWT did as well.
    3/18/13
    Reply (15)
    • wheelz23: do you short on the announcement? and then buy after it drops to offering price? i don't really follow secondaries, but that seems to be
      3/18/13
    • wheelz23: strategy i'd go with
      3/18/13
    • Tom in Texas: Buying opportunity. IIRC, $LRE pays a healthy dividend.
      3/18/13
    • Tom in Texas: 10.97% (I clicked on my link) B4 the expected coming dip. Buy @ 12% div?
      3/18/13
    • Albert Alfonso: All of those are great income stocks. Gonna see if I can grab some LRE or TICC on the cheap.
      3/19/13
    • Ocean Man: There are two strategies around secondaries. First, is buying the dip. Good MLPs and mREITs tend to recover the drop. Sometimes it takes a
      3/19/13
    • Ocean Man: couple days, sometimes many weeks, but is more often than not an easy 4 or 5% if the market doesn't drop. Second, is shorting the news.
      3/19/13
    • Ocean Man: If you're quick you might catch it down 1% on it's way to down 5%. MLPs and mREITs are pretty standard with 4 or 5% discount to current
      3/19/13
    • Ocean Man: price, but if they announce the size of the secondary before they announce the pricing, and if the size is more than 20% of the float, it
      3/19/13
    • Ocean Man: might get a larger discount and could be a strategic short. Even better is when you see a biopharma announce a secondary of significant
      3/19/13
    • Ocean Man: size - those are often priced 20% or more below the current price.
      3/19/13
    • monumentalgains: OM, what's your take on the SN news yesterday?
      3/19/13
    • losbronces: $LRE also announced some new drop-downs from Lime Rock: http://bit.ly/ZXuyk8
      3/19/13
    • Ocean Man: I found it interesting that SN funded that acquisition with convertible preferred shares rather than debt. Still analyzing the acreage.
      3/19/13
    • wheelz23: thanks OM
      3/19/13