upsized secondary priced very well at $16.85 - stock down heavily though
Actually the pricing and the upsizing of the deal by 50% shows there was very strong institutional buying interest for this offering. To be honest every decrease in DRYS stake in the company should be celebrated by investors as the company moves closer to independence from the shady influence of the DRYS CEO. The current ownership structure already makes ORIG stock selling for much less than most of its competitors but it shouldn't take an additional beating when shares move from DRYS to institutional investors.
The stock should be accumulated aggressively on this undeserved punishment here. Remember also that shareholders were not diluted as all shares were offered by DRYS. Would expect analysts to come out tomorrow to defend the stock.
Market has been very fast to forgive most kinds of disappointments as of late, this one should be no exception here.
Agree that this is an opportunity for accumulation. Pricing the offering below current market is a standard tactic to get the underwriters on board. They will be able to move the market above the 16.85 offer price so that they can profit.
Not sure the punishment was undeserved. My question is, why the sudden run up just prior to the offering? Looks like manipulation to drive up the offering price. Remember, there will still be two bad earnings reports for orig before the downtime subsides and high value contracts drive maximum profitability. I thing the stock will see the 15s before it sees the 18s.
"""To be honest every decrease in DRYS stake in the company should be celebrated by investors as the company moves closer to independence from the shady influence of the DRYS CEO."""
This will NOT decrease the influence of George.
Just like last time, George will be one of the buyers of this offering, increasing his ownership.
And George being the CEO of ORIG, and owner of Cardiff, means George is still King.