How often can CODI dilute existing shares? Any controlling SEC regulations?
I own many other REIT stocks in my portfolio and this ca. 7.5% drop in pps today, 04-13-2010, is the largest I have seen. Referencing "historical prices" for CODI via Yahoo Finance, looking back several years, I see no comparable daily drop in pps as we experienced today.
Is everyone on this board that mentioned "dilution" of existing shares certain that the pps lead-balloon drop today is attributable only to dilution or is the market reflecting a belief that CODI really has weak fundamentals and no growth potential?
Please give me your informed opinions.
How many of you think this is a time to buy more shares as opposed to closing out this position in CODI entirely?
Two things.One, the big price drop today was caused, in my opinion,by the company pricing the shares over a dollar below yesterdays closing price.This was done to make sure the shares were sold.Secondly,get used to these kind of secondary offerings.Because the company pays out almost all of its income as distributions,the only way it can grow is by raising more money to make accretive acqusitions.I think we just have to trust the management to use the money wisely.
Wrong, price change was due to over reaction. There were 36.6 million shares at $16.15. 6.4 million at $15.10 were sold. That is a decrease of $1.05 per share, about $6.7 million in total, diluting the 36.6 million shares by 18 cents per share, yet we are down a dollar more than that. We are very oversold, good time to buy