Market Currents

American Capital Mortgage (MTGE) prices its 20M share secondary with gross proceeds of $513M...

Tuesday, February 12, 9:14 AM ET
American Capital Mortgage (MTGE) prices its 20M share secondary with gross proceeds of $513M ($25.65/share). Shares -3.5% premarket to $25.65. Shares closed yesterday at $26.57 vs. Dec. 31 book value of $25.74. (PR)

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This news story has 3 comments:

Boog Comments (94)

Someone explain to me why a 50% increase in the number of shares outstanding hasn't resulted in a significant drop in share price - since the book value per share is now about 1/3 less... ? What am I missing?

12 Feb, 10:22 AM Reply Like

4skin Comment (1)

Boog, how do you get 1/3 less BV? They're probably netting somewhere around $24.36 per share after expenses, putting the new BV somewhere close to $25.20. A drop of around $.50. Are you not counting the cash they're getting in exchange for the new shares?

12 Feb, 11:23 AM Reply Like

Boog Comments (94)

Ah-ha! My bad... I did indeed not include the cash they will receive. Duh! :-( Thanks for the response....

12 Feb, 11:35 AM Reply Like

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