Fri, Sep 19, 2014, 5:33 PM EDT - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

CTS Corporation Message Board

  • cwradechicago cwradechicago Dec 14, 1999 3:17 AM Flag

    Re downward price pressure

    On Nov 11 CTS filed with the SEC for a 500M
    equity offering. This will mean approx 7.5 million or
    40% more shares added to the float which is 27.55 mil
    at the moment.
    The major factor that is moving
    the stock now is the relatevely low float.
    The
    larger float will make the stock more difficult to move
    up and easier to move down. CTS has been moving at
    aprox 100,000 shares over the 30 day moving average on
    no news. I believe the distribution of these shares
    will be distributed over a substancial period of time
    so that CTS can maxamize their gain. Yep folks thats
    right, you are seeing the shares added to the company
    for the sole purpose of diluting our shares adding to
    their cash flow. I will keep CTS in the rearview
    mirror.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I don't feel like rereading back post, if I misintupreted you sincerest apologies. Yes it is dilutive, but I'm not too worried about it.

      surfer

    • Actually, I work not far from Lupus St. Our
      office is at Victoria Station. Last year we had a
      leaving do for a colleague at a Tapas bar on Lupus St, so
      I do know where it is. Small world.

      Your
      location says Kilburn - is that NW5 or is there another
      Kilburn I'm not aware of?? :-)

      Looking for great
      things from CTS as well.

      cheers,

      garsch

    • Read again what I wrote. I never said anything about its being negative, and please don't read into my words. I merely said it would be dilutive.

      garsch

    • You forgot to post this:

      "The net proceeds
      from the sale of the offered securities will be used
      for
      general corporate purposes, including repayment of debt,
      acquisitions, research
      and development, plant expansions and
      further investments in technology. Any
      additional uses
      of net proceeds will be discussed in the
      accompanying prospectus
      supplement."

      Yes its
      dilutive short term, but its also known as
      growth.

      Month old news is just that, give it up.

      BTW I
      don't care if you're long or short.

    • USE OF PROCEEDS

      The net proceeds from
      the sale of the offered securities will be used
      for
      general corporate purposes, including repayment of debt,
      acquisitions, research
      and development, plant expansions and
      further investments in technology. Any
      additional uses
      of net proceeds will be discussed in the
      accompanying prospectus
      supplement.

      How can the
      above be viewed as negative? Looks more like CTS
      management wants to strengthen an already very strong
      company. It's earnings that will drive this stock as it
      has in the past. Look for CTS to blowout earnings
      again, this quarter-Dec 99.

    • micro00 wrote:
      <no major acq. in works. Why
      do an acq. when your running full
      out?>

      First, so you can read it for yourselves, here's the
      link to the amended registration filed on Friday the
      10th.
      http://www.edgar-online.com/bin/edgardoc/DocFrame.pl?doc=A-26058-0000912057-99-0
      09015&fmt=text&nad=&nav=1&x=62&y=17


      It's a registration to sell $500 million in "DEBT
      SECURITIES, COMMON STOCK, PREFERRED STOCK and WARRANTS" as it
      says in the title of the registration. This isn't for
      employee stock options.

      Here's the first two
      paragraphs:

      "We will provide specific terms of the securities
      offered to the public in
      supplements to this
      prospectus.

      "This prospectus may be used to offer and
      sell securities only if accompanied
      by a prospectus
      supplement. The prospectus supplement is more specific than
      this
      prospectus and to the extent information differs from this
      prospectus, you
      should rely on the information in the
      prospectus supplement. You should read
      this prospectus
      and any supplement very carefully before you
      invest."

      A little further digging reveals:

      "Our
      growth has been achieved, in part, by acquisitions. As
      part of our
      overall business plan, we may from time
      to time consider strategic acquisitions
      of other
      companies or investments in joint ventures that we believe
      can benefit
      from our operations, management and
      access to capital or enhance our
      relationships with
      existing or potential new customers. Our ability to grow
      by
      acquisition is dependent upon, and may be limited by, the
      availability of
      suitable acquisition candidates and
      capital."

      Management will not tell you in advance of
      any acuisition in the works, as that would be
      illegal. They have to make the information available to
      all at once.

      An offering of this size would
      necessarily be dilutive. If there are more shares
      outstanding, then each share is worth less. Granted, there
      would be more cash in the coffers, but think about
      earnings per share, cash per share, etc.

      Let's not
      invest blindly, or wish
      blindly.

      garsch

      (Long, BTW)

    • But there is a lack of creditablity in your post.

      The float is closer to 18 mil. And it's a lot more
      than a low float that has been moving this stock. I'll
      check tomorrow with IR about your claims with regard to
      share dilution here.

      Funny, how in a couple of
      days you go from a raging bull to a naysayer.

 
CTS
16.86-0.19(-1.11%)Sep 19 4:03 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.