RCKY files S-3 to offer up to $75 million in common stock....
....wasnt expecting that, their debt is under control. Maybe looking at an acquisition?
from the S-3 filing:
"USE OF PROCEEDS:
Unless otherwise indicated in the prospectus supplement, we intend to use the net proceeds from the sale of securities under this prospectus for general corporate purposes, which may include additions to working capital, repayment or redemption of existing indebtedness and financing capital expenditures and acquisitions. We will set forth in the particular prospectus supplement our intended use for the net proceeds we receive from the sale of our securities under such prospectus supplement."
1) Acquisition seems to be the only likely reason for this secondary. But where can they get a target cheaper than RCKY so there is no dilution. IMHO, it is certainly a good move to make Rocky a bigger company, more noticable in the market. They could also need to get fund to expand Durango line but not $75 millions.
2) Shelf filing a done move? Frequently I saw shelf filing reported but never get it done. In this case, I notice selling broker is not yet designated. So, isn't it still on chalkboard?
1) On SCVL's earning CC, they claimed boot sales in coming season going to be good but focus will be less on work boot. On ensuing day, RCKY drops below $16. I thought "Wow! Market is really sensitive." Now it may sound like due to another reason.
2) 2-3 years ago, the management made major pivotal move to issue 2 millions or so shares to stengthen balance sheet that leads to debt restructure. I recalled that I pounded the table and suggested it accretive. That action leads the stock from $7s to now double. This management is good at math. For whatever they decide, I trust it will be accretive enventually.
The Director selling knows it is time to take some cash!
I guess it is also possible they could do a stock split but many companies become arrogant with a smell of success and then think they can manage acquisitions. This oinker really thinks they managed the EJ acquisition well when all they did was go through years of poor returns to shareholders and good returns to family.
Kiss of Death...once again they do something to take any remaining air out of sails. They cannot understand they should be ACQUIRED not the ACQUIRER. I deeply regret not selling everything at 16+ as we may not see that again.