the seller is an insider, a Director of the company and a more than 10% holder of the company's common. Therefore, he is required to make public any trade in LGF stock. So, instead of just doing an SEC filing after the sale, the company puts out a PR to explain and clarify the sale. This avoids unnecessary speculation. However, I don't think the company has done a good job explaining this.
No way big boys like JPM price this out at 32 with a close date next week unless they have buyers lined up. They have shopping this dog around for weeks now I bet. Extreme pressure today is manufactured by MM to get shares below 32 knowing we will have a 32 bottom next week when the SO CALLED SECONDARY is done.
So this could all be for not potentially, unless a buyer wants it at 32, but why would they. Where is the common sense in it or is this guy willing to do anything to buy the Hawks? Hey, how about the shareholders over here!
found the info about the lowered guidance...
and Stifel says the offering is negative because it reflects that MHR could not find a strategic buyer...
well maybe nobody will even offer $32 since you can snag shares for under that price now...
...but the rule would apply to the largest shareholder for the shareholder to disclose...
here LGF is issuing the press release....and it is labeled a secondary offering which is very misleading
very very confusing
I was reading headlines when I wrote the message, but Cramer stated so on CNBC. I haven't found specifics yet and I'm not sure how quick Yahoo updates it's data.
It didn't seem to make sense to me at first, but after thinking about it, it seems the best way to dispose of 10M shares. Considering LGF's low float and daily trading average of 1M shares, selling 10M on the open market would be like pushing the stock price over a cliff. Rachesky gets a better price for his shares to pursue the Hawks and LGF's share price doesn't suffer from a free fall.
LGF also lowered guidance, which concerns me more.
I believe there is an SEC rule about disclosing a sale after some limit of float being sold is reached. It basically ends the confusion of "new" shares being issues, which they are not.
I'm not sure, but all he wants is his money to buy the Hawks. If one is selling LGF based on this news, I wouldn't. If you sell that much stock, someone wants it, now who would the parties be? It is not the regular retail investor like myself or you. Now no one does this kind of deal without a lot of time thinking about it and running it by certain people. Does anyone not think Malone or the Chinese Big Investor who owns AMC Theatre and others don't know what Radesevky was doing?
I have a question and am rather confused. Those with more information please feel free to clarify.
Why is Lionsgate involved in any why in connection with an announcement doing a secondary offering for shares that are owned by a 3d party. That makes no sense to me. For example if Buffet wanted to sell 20 percent of his Coke shares, would Coke do a secondary offering? Would Coke make an announcement? This makes no sense to me. How is this an underwritten secondary offering? Nothing is being offered from the company. It is simply the largest shareholder deciding he needs to raise cash presumably to buy the Hawks. How is this a public offering?
RetiredJoe is not a dishonest pumper. He either read the press release wrong or did the math wrong. He has given the shorts congrats in the past for getting this call right. The rest of the pumpers on this board have not though.
Within the last week, large block sales of LGF have occurred. If LGF was set to announce a couple of quarters of good earnings, I believe these sales would have been postponed.