Okay, so I've been around the market for quite some time, and never got my feet wet with Rights Offerings. I get it the mathematical aspect of it it...I understand, it's simple, basic math. With that being said, let me present a scenario that doesn't seem to make all that much sense (or maybe I'm wrong).
Ex: I own 30,000 shares. I'd be granted 10,000 common shares at the price of $3.00 a share, making my total buy-in at $30,000. Now I have until November 21st, 2013 4:59:59pm EST. to purchase these additional shares at that discounted price. Here's where it doesn't seem to match up. If STXS is doing well, lets say it reaches $10.00 (lets pick an even number to make the math simple) by mid day of November 21st, I can still purchase those 10,000 shares at $3.00 a share, and tomorrow (November 22nd) sell them at the $10.00 a share price that it's currently at, profiting $70,000 ($30,000 to buy-in, $1000,000 when sold for those that do not follow) in less than 24 hours. To my understanding, the Rights Offering ticker will be under "STXSR" opposed to the "STXS" that we all use now. Will "STXSR" be in total correlation to "STXS", or will it be a slightly differnt investment? Like I said, I've been around the market for a while, but still have questions from time to time that I don't fully understand which is why this message board is here. Nobody should be afraid to ask questions, that's how you learn and grow. With that being said, if anyone can provide a valid answer or reasoning for this I'd greatly appreciate it. Thanks.
JMHO - Offerings like this or any other seldom work out for those who are sold into buying them. I already have too much money tied up in this. Any spike in price will just be shorted back down. I have no trust in anything here..it just plain stinks to me. I will hold my buy in at 4.75 because it will bounce again then bail and move to something a little less controlled by shorts.
I only have experience with one other stock on a rights offering. Two things: that stock sank to the offering price and then at the last minute, when one could still buy their stocks, it shot up and then continued to climb and never looked back. It has since tripled. Two things made that happen, a big investor in the company bought all the rights offering they could and then scooped up everything left over from those who did not execute their rights. That purchase gave the company a good confidence boost. Secondly investors pushed it up as they always do. Good luck I am buying this time.