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If you read the story on the 27th, Arch successfully priced the offering. That means the shares were fully subscribed/or oversubscribed at 17.50So the market pulls back a bit. If people were buying to flip, they are out of luck and that puts downward pressure on the stockMoody's just upgraded the outlook for the companyAs the recovery takes place and new coal electric plants come on line, Arch will be well positioned.The secondary is not broken, it was well and successfully executed. However, if you think Arch is going down in price, increase your short position or buy puts... I however am going long as I fel the future is bright for this company.
I agree with what rexob had to say 100%. I loaded up today I as soon as all the flippers of the secondary have been pushed out the real money will come in & push ACI to $19. Probably by Wednesday of next week.
Give me a break about the secondary being broken the dollar was strong today and oil cratered to under 63 and ACI wasn't down that much I agree 19 next week.
The definition of a broken secondary is when the stock trades below the secondary price. The secondary price, when a deal is priced properly, should provide rock solid support.The fact that ACI is trading 4% below the secondary price is the definition of a broken deal.It's not debatable, it is what it is. If you price an IPO at 12 and it trades down to 10, guess what, you screwed up. Same deal with a secondary.