Need an explanation from anyone here. I do not understand why Cathay announced selling millions of shares at $8.8 but the stock went up yesterday to over $9.50. Why investors would not wait yesterday and buy at $8.80 a share later.Thanks.
icy,Read my post on 2-7-2010.Now you see it, $13.00+
Those shares are not being offered on the open market. The company is issuing new shares to raise money.$8.80 is the price at which the underwriter was able to find institutions willing to invest.It has nothing to do with you or me putting in a bid or ask on the open marketSometimes after an offering the stock price tends to gravitate towards the offering price, but sometimes not. It's hard to predict.
Is $8.8 the public offer price ? Somebody tries to make public offer attractive ?
why ?most people believe CATYshould be at least $13.00 now.By end of year, $19.00.
Pang,I saw the announcement on Tuesday. I do not know if it is a public offering price.