Dollar General Corporation Message Board

PE is very high. WMT much better. Also, 2ndardy makes me jitter.

25 million more shares dilutes the value per share and this position is up about 50 percent. hence selling on news and dilution.

Because of panic selling by "after hours" traders who aren't sophisticated enough to understand what is going on. The secondary offering is an offering of ALREADY EXISTING SHARES. No new shares are being issued. Existing shareholders (in this case KKR, the private equity group who took DG private in 2007) are further reducing their stake in the company. Not uncommon for private equity, as secondary offerings are their exit strategy. All of these knee-jerk commenters on the board need to take a look at the historical trends since 2009 when KKR first took Dollar General private again - no less than 4 or 5 secondary offerings, and in that 2 1/2 year period, the stock has gone from $21 a share to $49. Obviously not hurting the stock.

yes if they already own the shares why is call an offering if the company does not increase the number of shares? and why would they sell?