Anyone thinking the offering price is going to be near 50 is smoking something. When the announcment was made, PANL was 46.5 the night before. They already had an idea on where the pricing would be before they let us ametuers know.
Even though PANL $25 stock in December, the PPS rose steadily into the 40s. There were enough shares traded in the 40-42 area to assume that would have a been a good place to put a stake in the ground for the offering.
We will see where it ends up. GS is not stepping the price up. It is an individual investor who will bail prior to the pricing.
I thinks much more. Shorts I think you know your are standing in front a freight train. I would cover and take your loss and make it up by getting long. This action on the back of an offering announcement its not going to be pretty for you and I'm not gloating or anything - i'm just trying to make you money.
I couldnt agree more with your post. I wouldnt short this with someone else's money. There are far better opportunities if you need to short. This stock could keep exploding up. It's a great speculation situation not having earnings with a stock thats flying. One big thing you dont have to worry about to stop the momentum.
I would not panic on this. Its a fast growing company and like all fast growing companies they need capital to deal with growth plans. PANL is in a position to do it with equity vs debt. This is a good thing. Also noticed Goldman Sachs is on the lead on this offering. This also is a good thing that they have Goldmans attention. There will be more of these down the road and it's a positive. With regards to the patent issue in Japan again - not a concern when you look at the business from 30,000 feet. There will be more of this too and it's just the nature of thier business. Lititgation is part of it. So chill out and buy more on hopefully a dip today.
The price will depend upon a lot of things but I would not be surprised to see the offering over subscribe and substantially so given the sponsorship (GS and UBS for a company this small is pretty surprising), the market valuation of the company today and the forward prospects of the pps. GS and UBS could make that happen with ease.