Well, we will see what happens tomorrow - AH shows a drop of a buck. I know you can't put an awful lot of faith in AH trading but just the news alone will most likely scare some people. News like this always leads people to believe some dilution to earnings is coming (regardless of what proceeds are going to be used for).
I am intimately familiar with this company. Synaptics is kicking butt in every respect. This offering has everything to do with a future acquisition and zero to do with dilution or profit taking.
It indicates confidence on the part of the SYNA team. Synaptics is going to become a $3billion company soon. You can't stop this train. The weak dollar is going to position Synaptics in the international market such that they are going to blow past all existing forecasts.
room62rocks: I didn't say that this news was about dilution. I said "News like this always leads people to believe some dilution to earnings is coming (regardless of what proceeds are going to be used for)." In other words, the market believes it will cause some dilution and reacts accordingly. I have no idea what this news will bring, I just stated what I thought the market might think.
The knee-jerk negative reaction to the proposed offering makes no sense.
It is like a homeowner applying for a home equity line of credit -- before stating exactly what home addition is planned.
This only becomes bad news when one hears the extra debt is being used for something stupid. With the track record of SYNA the past several years, one can be fairly sure the additional cash will be used wisely.
Those jumping now are either simply following market mechanics or not well educated on the strength and momentum of the company.
Today's silly sale is a nice buy opportunity for those who have been waiting for a market dip.