The new stock offering is scheduled to go for $10.72/share. Right now the market price is $10.35/shr. Will the offering be lowered to the market price or will the market price move up to the $10.72 offering ? How does that work?
Accretive to book value. Whether accretive or dilutive to you depends upon what you paid (< 10.40 = accretive, >10.40 = dilutive). I use 10.40 because that is approximate actual proceeds to the company after fees.
I don't much care for something that dilutes my value. This stock has been a nice steady dividend pump for me. Loved the recent share rise, but don't care for corporate actions that drop my value 10% in a day. Boo.
I need to pay closer attention to my investments. I didn't know this offering was coming, it's obvious that it would be priced at a discount and knock the shares down 6-7%, I snoozed and missed the opportunity to sell ahead. This drop on the other hand is an opportunity I am not missing. I already have doubled up and looking for more.
I am wondering, are you sure it's wise to set your offers so low? You might end up missing out trying to save a couple bucks. I expect TAXI to go to the $10.7 offer price soon.