quarter was not great, but not as bad as the price now indicates. management was a bit lame on the call. still i think its a buy down here in the low 13's with a yield around 12% and a decent balance sheet. drop down of the other half of pipeline should help
Can you explain announcing a secondary and pulling it within hours? Obviously the market is taking this as a major negative, does the company have a different view? Can the company confirm there has been no material change since their last conference call?
So they announce a secondary, then pull it within hours of announcing it. I am trying to understand what this could mean.
1. Did they plan to do this right after earnings figuring they would be about 2.75 and just looked at the price today and decided it was too low. This is the most likely answer, but you have to wonder didn't they see the price action the last few days and today and have some sense of where the afterhours price would go once they announced, so why did they announce if this price was too low, just bad coordination between the bankers and board? Did the mrd drop factor in?
2. I think the bears will say they were going to get a really bad price with low demand, but no way could that be determined within a few hours after the market close.
3. Maybe they had a single buyer who they or the bankers felt was going to pull down a bunch of the offering and then changed their mind.
4. Maybe there is interest in the company that has surfaced from a potential buyer or private equity player and there is a structure that is a better alternative to a secondary.
5. Maybe they felt they were being shorted or that word of the secondary had leaked and they didn't want to put up with that.
I would guess 1 is it, but in any case I am glad this offering was canceled. I bought the shares today and believe this is very undervalued and they are much better off being conservative and letting time work its way towards better industry conditions. Curious how other people see it?