Secondaries can often present buying opportunities for bullish investors interested in purchasing shares, because the sudden extra supply of stock tends to require that the offering be priced at an attractive discount to where the stock had previously been trading before the offering announcement. At last check, MGIC Investment Corp. shares are currently trading up about 0.5% on the day. The chart below shows the one year performance of MTG shares, versus its 200 day moving average:
They aren't even factoring in the fact that the debt converts at nearly $7/share..
This financing was nicely accretive.. Raised a lot of cash which will help them decrease their ratio, and permit them to write new business..
It also strengthens their negotiating position with BAC, IMO.. No longer are they are a risk of going out of business..
Btw, think we're going to still see that run to $5.50 today, or early tomorrow. Watch the $5.28 level.. Both the 15 and 30 minute PSARs are located there.. Flip those into uptrend and we're set to move up to $5.50 or 5.70..