I bought in aft. hrs. and ques. my decision but NOT now.....AGNC has not announced pricing before open in as long as I have knowned it...REMEMBER NLY did an offering w/out much(2%)of a downside.....now 29.03 The MARKET knows now!!!They will jump on this PRE-MARKET....IMO....PS THIS IS THE FIRST SPO I will sleep.
Looks like it got down to 29.30 in Pre-market, but the demand has been overwhelming (Vol. already over 30MM at 9:50 EST). Still, nowhere near the purchase price (29.02) of the lucky subscribers, who get a "nest on the ground".
I have a meeting today at 9:30 Eastern time, so I had to put in two orders of 25 calls each. January 19, strike 25's. I put in one tranche of 25 calls at $4.60 and another tranche of calls in at $5.00. That way if the price falls to $29.50 to $29.00, I potentially end up with an average cost basis of $4.80. Unfortunately, and I have missed a few trades lately, if I don't do this, I will miss the opportunity. I hate it when work inteferes with my trading. I don't know if I can participate at a price above $29.50, but I am all in here between $29.00 to $29.50. Anything over that doesn't seem prudent, unless we think this keeps trending North to something North of $31. As it is I get a return of approximately 25%, which is generally what has been happending with deep ITM calls with deltas of 1.
Here's a little more back up on the October numbers.
37 MM shares X $27.50 =$1,017,500,000 (Gross)
$1,017,500,000-$17,760,000* (This is the Underwriter's discount)=$999,740,000. (Net)
The press releases (I just looked back at two on Forbes and the Bloomberg link) said "about" one billion, so the above "net" number is pretty close.
37MM X $.48=$17,760,000
I wonder the same. It pains me to think they offer new shares to other people who have not put in the sweat equity, like we have. I think they should offer new shares well above the current PPS. Maybe at 32.03/ share. Then the 62 million shares could be purchased by those folks who are "new" to AGNC.
After all, that way our shares won't suffer any loss and those other new buyers will have to work, like we have, B4 their shares go up like ours. That way it would be more fare. Don't you see it that way?
Um, because that is always how it has always been done and always will be. This makes the shares attractive to the big money that buys these offerings. And this money will be used to make sure you keep getting double digit dividend checks. Win, win.
Where do you guys come from? Look at last Oct 27th and previous SPO's. Joe.C.Public, does not get the shares at the offering PPS. Last SPO, offering PPS 27.027. Cheapest , after open, 27.50. Look for the same tomorrow(29.50). Not much of a deal over a day ago(29.74).
But hey the Piglets will still be at the tit, sucking all of the 62 million shares dry within two days and we'll see 31.00 by March OPEX. It's March madness, after all, and everyone wants theirs. So let him sleep....