Thu, Jul 31, 2014, 10:20 PM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

Pembina Pipeline Corporation Message Board

  • mentges mentges Mar 13, 2013 11:29 AM Flag

    Secondary offerings show strength in a company

    I love secondary offerings, when proceeds are used to pay down debt and for expansion - and to keep the dividend pumping out. . .I never care about stock price in the short term because like Warren, I my holding period is forever!

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Secondary offerings are dilutive to existing shareholders. If you owned x% of PBA, after the offering, you will own less than x%. Earnings are now divided among more shares, not the same. If the money is being used to acquire or build new profitable assets, then that may offset the smaller piece of the pie.

      However, If the money goes to pay down prior borrowing, isn't that just indicative of a company that can't (and could not) afford the payments they'd agreed to in the past? So they effectively borrowed in the past knowing full well they would need to dilute in the future to pay it off?

 
PBA
41.88-0.55(-1.30%)Jul 31 4:02 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Tesla Motors, Inc.
NasdaqGSThu, Jul 31, 2014 4:00 PM EDT
GoPro, Inc.
NasdaqGSThu, Jul 31, 2014 4:00 PM EDT