That has to be the worst idea I have ever seen. There is no way they can price new shares higher than 3.75 no way! So if you wait a day you can get it way cheaper. Im a buyer of cim but only after new price is set. Buy new shares day of and two days after issueing for the rally its easy. Tell me im wrong with numbers and not personal shots. Try to use history and math. Has a company every opened up the morning of issueing 125 million shares? Ever???! agnc had one just a few weeks ago went down to 26 then quickly back up so just buy into the morning sell off but why buy AH before a price is even set?
Don't you think the investment of 125 mil will be acreative...they will cover the additional dividend with money made from investing this equity raise...
with 125M additional share they will need to pay additional divident each quarter. that's another 14% cash out each quarter, or an equivalent drop of yield of 14%. People will bid it down as it's yield lowers.
just watched a sucker pay 4.00 for shares pre mkt! Why??? Just wait an hour and you can get them at very least at 3.88 no joke no exageration. That is 100% conservative most likely get them at 3.81 or 3.71 in all the furry.
Caution would be prudent here,I would not jump on it at the opening trade,put in a low bid and wait for it to come to you.
That's quite a few shares and market makers may mess with it to the downside to shake out all the "dippers" looking for a sale.
The last time they offered additional shares, the issue price was 04.5% lower than the closing share price. If they follow the same formula, the price should be $3.85. Last time the price drifted somwhat lower over the following days. If that repeats, it could fall to $3.67 in a couple of weeks. IMO