a strong bet there will be a secondary offering on shares of OAS. stock price will drop big time when this happens. management meeting this week. a possible announcement on that. this isnt heavily traded at the moment so more shares are needed and dont most IPO's eventually need a secondary??? only makes sense to me!!! am gonna wait till this is announced!!
Is the expected drop sort of like the ones Brigham experienced when they did 2 stock offerings last year only to see their stock continue to rise. Your speculation about an offering and assumptions about the affect on the stock are pretty flimsy.
lAgree. Further, this is not about buying growth stocks at the low...It is about buying them and selling at a large profit...so whether or not there is or is not a secondary buying the stock in here below 30 seems fine if your time horizon is at least one year...2012 and 2013 will also be great years for OAS...plenty good enough for me.
"Balance Sheet Oasis also ended the year with a pristine balance sheet to fund future development of this acreage. The company reported cash and cash equivalents of $270 million and no debt as of September 30, and it estimates that it can fund most of its 2011 capital program without any borrowing."
2010 Recap Oasis Petroleum went public in 2010, as it sought to take advantage of the current investor infatuation with companies that have exposure to oil and liquids plays. The company will continue with this type of development in 2011. (Thinking of investing here? We give you five tips to remember.>>>>>Eric Fox Investopedia
it may drop big time which would present a great entry point or an opportunity to add shares. or it may surge big time if the secondary offering is picked up by "smart money" at a price close to current share value or greater.