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FLY Leasing Limited Message Board

  • airlease2000 airlease2000 Jul 15, 2013 4:30 PM Flag

    Did I miss the price of the secondary?

    When they announced the secondary - did I miss the price. It was easily available days later - but at the beginning I didn't have it. Knowing it was at 14 would have changed my whole strategy in the beginning but did I just miss it?
    Obviously management knew what it was - and other parties would have known allowing them to short the stock at a much higher price guaranteeing them a gain.

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    • air -- as you know it's all about timing and luck. Analysis will only get you so far - and there is much we don't know... as with ATSG long ago at under .25. Why just looking at post bought FLY at 14.20 and have now acq'd 1,000 shares of AYR at under 14.50. learning about this industry but still it's healthcare and two rest plays CBRL - hometown, and WEN like their salads and prezel burger -- small play with Eistein Bagls bought at 12.00 like their coffee and bagels better than St Louis Bread Co. all have been screaming in the past 5 months. take a look

    • Air- You're a very savvy guy so I was very surprised to read that you thought you may have missed the pricing. The delay enabled the banksters to short the stock and walk it down to $14.75 before announcing the price. Sounds illegal and if it isn't it should be. Once they set the price it was inevitable that the share price would trade down to the announced number. At that point they probably covered, thus the snap back in price.

      No fear, the SEC has our back, sure they do.

      Sentiment: Strong Buy

      • 2 Replies to tthemainman38
      • It wasn't just that they didn't announce the price immediately - they waited a couple days. I don't remember other companies waiting so long. (again thought they missed it). We know that as they were shopping the shares around they had to have some idea of what the price would be - giving those "insiders" a chance to make a bundle of money - and those poor suckers holding the stock taking a bath. I understand giving a discount to the buyers - but 14 seemed excessive and I never imagined that the secondary would be that low. If they had at least given a range up front it would have given the poor holders of their security a chance to react. So this is FLY's second back eye since I have owned them. I am hoping(and expect it) that they come through with a deal that makes this pain go away. When they end up undervalued they can look back and understand it was their own handling of this situation that drives investors away - maybe they don't care.

      • they didnt need to cover per se due to the fact that fly created new shares. Had they covered we would be over 16.

    • I think its pretty common that secondaries don't price until after they're announced. They supposedly spend the next couple days finding buyers now that the news is public. The bankers running the deal may short the stock if they arent finding buyers to hedge their bets and then take delivery of the shares at the lower secondary price. Instant profit.

      FYI- check out the finalized registration statement, after commissions on the offering the stock was effectively sold for $13.16. I hope they announce a deal this week so we can see if this was all worth it.

      • 1 Reply to stinosmos
      • From the revised prospectus:
        In order to facilitate the offering of the ADSs, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the ADSs. Specifically, the underwriters may sell more ADSs than they are obligated to purchase under the underwriting agreement, creating a short position. A short sale is covered if the short position is no greater than the number of ADSs available for purchase by the underwriters under their option to purchase additional ADSs. The underwriters can close out a covered short sale by exercising the option to purchase additional ADSs or purchasing ADSs in the open market. In determining the source of ADSs to close out a covered short sale, the underwriters will consider, among other things, the open market price of ADSs compared to the price available under the option to purchase additional ADSs. The underwriters may also sell ADSs in excess of the option to purchase additional ADSs, creating a naked short position. The underwriters must close out any naked short position by purchasing ADSs in the open market. A naked short position is more likely to be created if the underwriters are concerned that there may be downward pressure on the price of the ADSs in the open market after pricing that could adversely affect investors who purchase in this offering. As an additional means of facilitating this offering, the underwriters may bid for, and purchase, ADSs in the open market to stabilize the price of the ADSs. The underwriting syndicate may also reclaim selling concessions allowed to an underwriter or a dealer for distributing the ADSs in the offering if the syndicate repurchases previously distributed ADSs to cover syndicate short positions or to stabilize the price of the ADSs. These activities may raise or maintain the market price of the ADSs above independent market levels or prevent or #$%$ a decline in the market price of the ADSs.

    • No, you didnt miss it! Is it common to announce a secondary without the share price? Secondary’s are pretty common with the MLP’s I have held, and I don’t recall the secondary’s being announced without the offering price, but maybe I’m wrong.

    • No, you did not miss it. When they announced the secondary, the offering price was blank in the SEC registration statement. It took a day or so to price and print.

 
FLY
14.76-0.18(-1.20%)Aug 1 4:02 PMEDT

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