what the heck??? and proceeds to retire debt and for general corporate purposes?? why don't they replace expensive debt with cheap debt like everyone is doing? instead of diluting equity??? and the remainder of funds invested in treasuries and money market? after hour of 120 and I don't see news of what the new offering price is, so I'm guessing it is 120?? unbelievable. Still nice gains though.
tough call.. in general, these offering means the underwriter can short the stock because they have the option to buy shares from the issuer to cover their short if the stock runs up too much. So 115 wouldn't surprise me. Longer term, this is probably 150 by year end...but maybe 110 before it hits $150. Going to be volatile. The reason why they doing equity instead of debt is probably because they are so leveraged already. Still, the idea of issuing expensive equity vs getting cheap debt in this market is strange...I mean can't they knock on apple's door and say how about lending me some of your loot for 2% rates.