Not a bad guess at all. Offering has just come out at 4,800,000 units plus underwriters have right to purchase up to another 720,000 units.
Stock getting hit in aftermarkets on the announcement, but this is very typical. My experience has been that the sharp selloffs in LP shares that ALWAYS happen when they issue additional units to expand their biz are the very best times to be buying into the shares. Never know when the exact stock price bottom will hit, but buying off share issuances has consistently worked for me.
I got in some shares during the height of the stupidity last night. Just wish I had been willing to take more than a 1/4 weighted position in the trade. (Unfortuantely, my personal trading rules won't let me do more unless in extreme conditions (extreme conviction)).
It really is amazing how often what happened with BPL last night happens in the entire pipeline sector. I guess there are just too many robo-traders who see additional shares to be issued and hit the sell button without regard to the bid price.
I plan on continuing to do similar trades in the sector as they happen as long as the purpose of the new share issuance (financing) is as obviously positive as this one was.