The main investor sold half their shares at $13 which is a clear indication that $7 was coming before $20. Management clearly indicated they would be buying back shares at higher amounts. They may get to do so at much lower prices.
HAMILTON, Bermuda, Nov. 3, 2015 /PRNewswire/ -- Ardmore Shipping Corporation (ASC) ("Ardmore" or the "Company") today announced that GA Holdings LLC (the "Selling Shareholder") has priced an underwritten public offering of 4,000,000 shares of the Company's common stock at a public offering price of $13.25 per share. The Selling Shareholder has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of common stock. The shares to be sold by the Selling Shareholder, excluding shares subject to the option, represent approximately 49% of the shares held by the Selling Shareholder. The Company is not selling any shares and will not receive any proceeds from the offering. ($13.25 - $8.57 = $4.68 per share X 4,000,000 shares = $18,720,000. If GA exercise the additional 600,000 shares - additional $2,808,000. Wonder if GA will buy those shares back? Thoughts?
I guess the insiders selling at $12 new this was coming? I believe I did say this could be picked up much cheaper and here we are. Still some downside. If the company does not have a fantastic 1st quarter we will see a much lower share price.
agreed. barring significant volume decline in freight they should be at $1.0 billion of EBITDA. If they make that level, the debt is not as daunting
It has 1:1 leverage. It was never over levered. They own ships, the stock is not cheap, ties to oil and overall rate pressure coming in 17 and 18 is the bear argument. Anchor investor selling at 12+ didn't help either.
yes. anyone leveraged into this trade is margin called. it's not over yet. many more arbitrage players to shake out before it moves higher.
FIG is a distressed investor. Market is finally heading their way. They have a war chest of capital. nonetheless, they will sell off. Let's hope for $1 again.
agreed but you have to take into consideration wash sales so need to sit out for 30 days. I'm looking to get back in around 11 but selling pressure is clearly subsiding over the past week.
play both sides of the trade yourself. might as well. Think of it as insurance that happens to make you money rather than take your money.
great news!!!! congrats to all that held tight and to those that covered within the last week prior to today's meeting. nice work.
of course. FIG companies are great if you catch them at the correct time. you cant chase them. short them when they are flying high and buy them back in recessions.
it doesn't necessarily have to be a margin loan. My point was simply that certain funds and investors are levered into NRZ. They are obviously selling. CLO equity experienced zero losses in 2008-2009 for corporate credits. They did experience delays in cash flow but no credit losses. mortgages were another story as we all know.