Very disappointed in this decision. With the stock so severely undervalued we get less than optimal value for selling stock. And now there are 30% more shares outstanding for $24million. Totally not worth it.
Especially with interest rates so low, debt would've been a far better choice.
s12, you know they announced the decision weeks ago, its not new. I think it was the correct thing to do.
UVE, a Florida Insurer, did a stock offering, what, like a year ago, at around $3.80 and the stock is now $8.20.
HCI, a Florida Insurer, did a stock offering I believe less than two years ago at around $10/share, the stock is now $47.
UIHC, a Florida Insurer, did a stock offering about one year ago at around $5.00/share, share price is now over $10.00.
FNHC is growing faster than UVE, HCI, and UIHC now, and at the time of their cash raises. FNHC obviously needed the money to fund growth. All the other Florida insurers did equity offering in the low interest rate environment, so it was pretty obvious that FNHC would follow.