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Adecoagro S.A. Message Board

  • serpentine290 serpentine290 Feb 7, 2013 7:13 AM Flag

    Explain the secondary


    Approximately 10% of the entire company will soon be available at $8.00 per share. Who is paying $8.50 per share (today's price) for an $8.00 stock? Why wouldn't a buyer just purchase whatever he wanted at the secondary? The 13,000,000 shares that are being offered through the secondary is the entire average daily volume of this stock for about 45 days? That amount of stock will cover a lot of demand. With that demand already covered, won't this secondary impede liquidity and subsequently share price?

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    • Morgan Stanley is the sole underwriter. Not stated in the PRs is if MS took the whole 13 mil.
      Assume MS bought at least a few million shs at $8.00. If the hedge fund seller cannot sell shares directly and as part of the deal and must sell to MS at $8.00 this would explain why the stock quickly ran to $8.50 and higher.

      If the hedge fund can sell directly why wouldn't it be selling now with the prices at $8.50 and higher.

      Now think of your typical IPO action- PUMP and DUMP. MS likely trading its own account and as they got shares at $8 are keeping the shares at $8.50 to lure in new buyers.

      Recall AGROs IPO at $11. it went to $13 for a while on very heavy volume before crashing to the 7s.
      How many suckers bought into that pump and dump.

      The system is rigged in favor of the GLOBALISTS. Not that hedge funds often short a stock they are big owners of. But hedge funds do not have to reveal their short positions. The odds are good that Soros has or has had short positions in AGRO. Without selling any long shares he could have shorted AGRO at $10.50 and the buy action you see now is short covering.

      Short sales are reported monthly. This leaves 30 days in between for a Soros type to short and cover without it ever being reported in the monthly figures.

      At this point AGRO is a Roulette wheel for short term traders. keep in mind that the company called owning AGRO 'high risk' in the recent filings. The 1-3-13 filing is the best overview you will find on AGRO.


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