An owner of ROYT decides to sell some of his shares, to get cash to reduce his debt.
This sale by an owner does not change ROYT balance sheet - - - it does not change the number of ROYT shares outstanding. Why should ROYT share price drop to $16.70 (or thereabouts) when the selling owner has a contract to sell his shares for $17.10 ? ? ?
Only reason that comes to mind is that the contracting buyers might have sold shares short in advance, and are now covering their short sales with this "price drive-down". Any other reasons ???
I think the press release caused some to think NEW shares were being issued. Also, those that had stop orders in place for protection may have been taken out. This looks like a great buying opp. Count me in. JMO
NEW units can never be issued in a trust.
Only existing ones. So no dilution but there will be a temporary price impact due to supply and demand of ROYT units. If you were planning to hold your units, it is of no concern. If you were planning to buy you are in luck. Only if you planned to sell your units today then you have bad luck/timing.
there is a perceived negative when insiders sells in a big unplanned secondard offering for whatever reason. add to this the many negative articles this year on trusts and mlps by brokerages and shorties? hoping to profit who claim inside knowledge or special analysis skills. meanwhile oil is booming along and this seems like a buying opp to me to add a little for sure.