PGT, Inc. files to sell common stock, no amount given
I really hate companies that do this, it kills the stock holding investor instead of borrowing the money and putting it on MGMT. shoulders. Stock offerings are like taking money out of your account making your number of shares a smaller piece of the pie, at the same time making mgmt numbers look good for their bonuses. Don't give me the story that they need the money to make higher future profits, they have other means to raise money then to steal stock value from the investors. You can count on the PPS going down next week.
The company has 57.7 million shares outstanding and 20.14 million shares for the float. If the company sells 35,000,000 into the open market, then the float would increase to 55.14 million shares or the float stays the same and the shares outstanding increases to 92.7 million shares. On the company's part, if the stock has this much buying interest, it would be better to add more shares to take advantage of the demand and to also create more share price stability. If the stock continues to go up as quick as it has been, it ends up turning into a bubble.
It's not a good thing for current shareholders, but it's a good thing for the company. Also, it could be a good thing for future investors who look for low risk (i.e. mutual funds). It's no conspiracy, it was probably done to reduce volitility in the stock price in case some bad news were to come out. So this might be some precautionary measure taken to make it a little harder for someone to keep pumping the share price. I don't know any further details until Monday, so this is all hypothetical. btw, there is a filing that you could probably view through your brokerage account.
it would be better to add more shares to take advantage of the demand and to also create more share price stability
Adding more shares is NEVER A GOOD THING FOR CURRENT SHARE HOLDERS! There is only so many slices to the pie and adding more slices makes you slice smaller in value! You can be sure that if this is a stock offering of 35M the pps will tank on monday as it should. You earnings per share will drop along with the value of your stock and there is nothing you can do about it. It is rare to have an offering of such a large % of the outstanding stock. If is true and I still can't find a sec filing that it is, then this mgmt has really put it to us.