we could see a pop in the price to 6.50 u.s minimum.
by the time these shares are issued they will be sold in the market
for 7.00 u.s.
so if you put the great earnings less the negative comments in the cc by management that forced share prices down in order to entice investors to buy the shares at 40% discount.
it was exactly what i tought they will do.and watch for shares buy-back.good luck to longs
I think you would probably end up in prison.There are very specific laws against that type of activity and these transactions are closely monitored to prevent just such things from happening.
I also think that there is a ridiculous amount of speculation about stock price manipulation here.
The price rose and subsequently fell because investors practiced the age old method known as "Buy the rumor, Sell the news." Nothing more,nothing less.This stock has been a loser for a couple of years now and most people don't have a lot of confidence in management yet.
This is what creates the opportunity for large gains.You MUST take RISKS in order to reap REWARDS.It amazes me that so many people are surprised when the pps doesn't rocket to the stratosphere after 2 quarters.
The share price increased by as much as 1400% in a matter of months.I would be more worried if it DID NOT pull back a little after that run.
if you are a major investor and you told by "BMO" on july 14 2009 that they will offer you COTT shares 5.35 u.s .the price of COTT shares then was between 6$ and 8$,what would you do?
1-sell short those shares at 6to8$ on july 27 or prior.
2-wait until you receive the shares
on 08-11-09 at 5.35 then sell them at the market price.
i think the 9 million shares were shorted
buy the investors between july 14 and july
27 (check the volume) at 6to8$ for a profit of
1.50$ to 2.50$ per share.
what do you think ?
This group (BMO, CIBC etc) have the right to buy these 9.4 million shares at $5.30 on around 8/11/09......They would NOT be excited if the share price were not artificially depressed. They would not be doing this unless they had a good look under the kimono to see what Cot is doing this quarter already......And they must have liked it.
By the time they receive their shares, COT may be trading again at $7 and the consortium could resell them for a 32% pop.....Not a bad way to reduce debt by cot and not a bad way to finance it by BMO etal.
This IS good news.
cott ,do not package just soda,they package financial deals that sell very fast for quick$$$$$
for the preferred investors that got the cash and don't wait.
why would any one invest 50$ million in common shares right of the bat.??????---->>>> $$$$$$$$$
There is not gonna be a share buyback. If there is, why dilute the pool first by issuing more shares.
Objectively, this issuance is bearish in the short term. There is not much volume on this stock so the market is not exactly excited about COT. A 2ndary offering below the mkt price will drag this stock below the offering price.
I think long term, this is good as balance sheet improves, at the cost of shares dilution. But the strength of the balance sheet can ease interest payment and improve the overall bottomline