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Whitestone tumbles after secondary offering

  • Pricing on the 4M share offering was at $13.54 per share, with underwriters having an option to purchase another 600K of the common. Net proceeds to Whitestone (WSR -6.1%) are expected to be about $52M. The offering will add about 27% to the stock float, assuming the greenshoe option is exercised.
  • Press release.
Comments (6)
  • reader
    , contributor
    Comments (324) | Send Message
     
    The question arises, Is this a good or bad thing?
    3 Oct 2013, 10:31 AM Reply Like
  • zachdog1
    , contributor
    Comments (185) | Send Message
     
    This is a gift. I added more shares this morning at $13.38 and locked in an 8.5%+ monthly dividend rate on those shares. This REIT has a lot going for it and has been dependable since their IPO.
    3 Oct 2013, 10:42 AM Reply Like
  • alschroed
    , contributor
    Comments (882) | Send Message
     
    This usually means they want to buy some property. I looked at their financials and their income looks outstanding for the first 6 months. 2013 should be great for earnings.
    3 Oct 2013, 11:05 AM Reply Like
  • zachdog1
    , contributor
    Comments (185) | Send Message
     
    Totally agree Alschroed!
    3 Oct 2013, 11:11 AM Reply Like
  • Archman Investor
    , contributor
    Comments (2351) | Send Message
     
    Been there, done that with all stocks that do secondary (especially REITs)

     

    Nothing to be concerned about here. Offering is priced. Let the market have its fun. Collect the dividends.
    3 Oct 2013, 11:31 AM Reply Like
  • Workinhard
    , contributor
    Comments (167) | Send Message
     
    Weak dividend coverage , low occupancy , marginal properties. Be careful with WSR in the longer term. May be good for a bounce post secondary but it's one of the highest yielding equity reits for a reason.
    4 Oct 2013, 02:09 AM Reply Like
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