Secondary closes May 20th, undersubscription possible
Watching the price action today, I don't know many people who would pay $5 for a stock trading at $4.75. Hopefully this rebounds today, or this offering is going to get repriced lower. I'm just waiting for it to close to put a price floor in, and this is still in limbo.
I dissagree. They priced 200 million share. With your logic we have a long way to go if all these shares were being flipped. Their is some flipping going on, but this won't move much with the $5 overhang until the subscription is closed.
I disagree, the insiders shorted the sh$t out of this stock at $8, knowing the stock would drop to the $5ish level. They are selling back and forth, one is covering the other is buying. The stock will rise with a furor, the money is made in the short and then once issued they sell for a quick buck.
This isn't going up past $5 until after May 20. It was really silly for the company to leave the over subscription open that long. It just put things on hold and screwed the buyer of the secondary. Lot of block purchases today and in this case, I see a rally next week back to $5. Don't expect much until the 20th. Why buy at $5 when you can buy at $4.55.
I imagine some of the subscribers are dumping shares also as a result of the manipulation.
It is below $5 because the insiders were privy to the offering and they ran the stock up to take a short position. They are now covering their shorts and the price will rebound once the offering closes. Once closed it will rise quickly to $7, seen this many times, if fact there are traders that play this specific scheme only.
wrong.. the 6 million share allotment has until May 20th.. the deal was priced and done last night.. You wouldn't have had the deal done at $200 mil vs the announced $125mil if it was undersubscribed.. You don't know what you are talking about..