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Seaspan Corporation Message Board

  • jdfunnell Jan 11, 2012 10:52 PM Flag

    Volume makes no sense, but the price does

    With virtually all the shares unavailable to sell, because they are locked up in the tender offer, no wonder the price has moved up over the past two days.

    But why we should trade north of a half million shares daily, after the tender deadline passed, leaves me scratching my head.

    But, then again, I've scratched my head about why the market price here bears no realtionship to the reality of Seaspan's results for more than a few years. I'd guess that will continue................Dave

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    • Only about 30% of the outstanding shares were tendered.

    • The deadline for the tender offer was midnight last night (1/11). So perhaps people who don't use discount brokers were able to tender after the close.

      Now that Seaspan has given us the preliminary numbers it seems they are purchasing a little over 11 million shares which is about 53% of the shares they were offered. This means there are more than 10 million shares that were tendered which were not purchased. So now I am wondering how many of these will be dumped on the open marked. With an average volume a little over half of a million per day, this is 20 trading days worth of volume. This could set up a sort of reverse short squeeze.

      Is it time to short?

      • 1 Reply to gptiede
      • I don't think those 10 million will be sold.

        I have 1,000 shares and wanted to keep them.

        What I did was tender my 1,000 shares yesterday seeing the price under $15 knowing they all wouldn't get taken. From the press release, it sounds like around 530 will be bough, so I bought $550 today at $13.67.

        I may not end up with exactly 1,000 shares, but I just reduced my overall cost by $730.

        I imagine there were quite a few people like me who will be looking to buy back here as well.

    • Sorry about the volume. I didn't mean to confuse you.

14.95+0.18(+1.22%)May 27 4:02 PMEDT