This is getting interesting, I may have to play it. :They announced a offering yesterday 3/7 after the market close...now usually they announce the offering PRICE the next morning before the market open (see recent offerings by agnc and mtge). The offering has to be at an attractive price compared to the market price to get the big money to buy large amounts of the offering. Now when they announce the offering PRICE the market price usually drops to approximately the price of the offering. But they did not do that....so they get a drop in price on the offering ANNOUNCEMENT which may increase the amount they have to discount the offering price from, which is around $22.20 today instead of the close last night which was $22.68......Now they may get a second haircut when they announce the offering PRICE because it might have to be at a discount from $22.20 instead of $22.68 ....I'm wondering if the company made this announcement before J P Morgan was ready....just my thoughts....anyone else have any theories.
P.S. There are other forces at work here too, which I will discuss in a later post as I muddle thru this logic.
Some stocks recently have had SPO's where the price was set at market close. I have no idea if this is true here but it could be. If it is the stock price will drop just before close. I am surprised they did not announce the amount they received from the stock sale and this makes me wonder if the price has been set yet.