Secondary to be priced after shareholders meeting. Kaboom.
They will surprise shareholders on a Friday like last time when they filed an offering. Stock was at $8.00. Offering done at $5.50. 50 % dilution . I expect they will do 10m shares at $7.0 this time.. Good Luck.
They just issued 110 million worth of bonds. And they had 30 something million cash remaining at the end of the year before the bond issuance. They cannot possibly issue shares if they have that much cash lying around. The investment banks won't do the deal -- they need a believable story to tell their clients.
So unless we hear about a large number of truck stop purchases that can use up all that existing cash, I really doubt there will be a stock offering.
That would only happen if there were the kind of opportunities to buy travel centers at the prices they were finding 2 years ago. I still think that deal to sell shares at $5.69 was raunchy, to say the least, but unless you are aware of more "deals" out there, like existed 2 years ago, management is probably not that sleazy.
Unfortunately, you do point out a legitimate risk, that may cap the near term move, I'm guessing, to the old highs from 2 or so years ago, at, say, $12-12.50. (But I DO think that the MASSIVE volume we saw today...basically the highest in 2 or so years...shows that this move is bonafide....and that we have higher to go on this stock, over the coming days.)
Thanks for the warning, I will go sell all my shares now below market value to save my butt. I thank you for your very well documented analysis. You are truly one of the greatest posters on this board and I'm am just so lucky to have the opportunity to read your thoughtful advice.