I'm new to this stock, but it looks like a good time is approaching to enter it, especially since the Repubs will push off the debt ceiling to late spring. It looks like new share price after dilution should be:
previous shares outstanding: ~40M
new shares outstanding: ~46M
previous price: 5.25
new price: 5.25 - (.15 * 5.25) = 4.47 (which is almost exactly the underwriter's price)
I'm wondering how the underwriters can get $4.75/share by 1/24 (closing date)? That is a premium above what the stock had been trading at. Normally offerings are priced below the current price after taking into account the additional shares, except when a run-up is expected, but then the closing date is usually farther into the future.
I'm trying to figure out a good entry point. Comments?