I agree - but still good to see futures pop into positive territory even for a little while this morning.
Gonna be a MASSIVE UP day for SOLAR NAMES!
They also announced the offer. Check out the prospectus on the sec website. This is live now...
They SAID THIS IN THE EARNINGS CALL LAST MONTH!!! They've been very forthright about their earnings.. "As we stated on our first quarter of 2013 earnings call, the sale of certain projects in Canada, which we refer to as the ABW projects, could close in the second half of 2013 rather than in the second quarter of 2013."...."This kind of quarterly variability is the principal reason that we have not historically provided guidance on a quarterly basis, and we reiterate that it is important to stay focused on our full year guidance, which we are reaffirming today."
Goldman IS a part of the offer but a small part. Not one of the leads...
gar4one - THEY ALWAYS USE THE CURRENT SHARE PRICE AT THE TIME OF THE OFFER AS THE ESTIMATE! WHAT ELSE ARE THEY GOING TO USE??? The only way you'll now what it priced at is when it is announced and it will be at a discount to the close. The amount of the discount will be determined by demand.
I don't have the details but that is not how it works. The shares ALWAYS price at a discount to the close of some date. Usually in the US it takes only 1 day to price out and sell a secondary. Meaning it is likely to price out tonight. There are no investors who would take a huge chunk of the offer at $60 when it is trading at $50 on the open market!
It will likely price at close of biz today with a discount range of -3 to -5% depending on how the stock trades today. Usually existing shareholders will get preferential allocation given they are being hurt by the dilution. Hedge funds who are short FSLR will try to get allocation but likely if there is strong demand by existing holders, then they won't get much. The drop in the share price usually signals a bottom. Look at DDD which did a 2ndary a month ago at $39. The stock rallied for 3 straight days following the dip. So basically...BTFD.
The market usually sells off an amount relative to the dilution, in this case 9% but given it was already down -7% y'day, I doubt it will end down that much. I don't own any FSLR but may if it tanks today.
agree but the lack of buying interest is frustrating as the stock is in control of the sellers at the moment.
UPDATE: Morgan Stanley Raises PT on Fusion-io on CEO Transition
11:01a ET May 15, 2013
In a report published on Wednesday, Morgan Stanley analyst Katy L. Huberty maintained an Overweight rating on Fusion-io (NYSE: FIO) and adds a price target of $29.00 on the basis of promising revenue growth with management transition.
In the report, Morgan Stanley noted, "Management transition reflects vision of doubling (or tripling) revenue with focused investments in high-ROIC projects, while reducing investment in non-core areas. Focus areas include: 1) launching next-gen ioScale and ioDrive in C2H13, 2) moving SDK to general availability, 3) expanding revenues through international expansion, new large customers, and market segments (like mid-market with NexGen). Profitable growth a top priority after nearly doubling the sales force and growing OpEx faster than revenue in FY13. By slowing investments in low or no profitability projects (e.g. ioDrive Octal or ioSAN), leveraging recent sales hires to win new large customers, and integrating recent acquisitions, management expects to grow OpEx slower than revenue in FY14 (reflecting potential EPS upside vs. our forecast)."
Fusion-io currently trades at $15.26.
That's why the stock popped. Should continue to rally as this news hits the wires. Limited downside risk here.
BIG BOYS AREN'T TRADING IN THE PRE-MARKET! There is a reason they call it the Amateur Hour! When this opens it will POP HIGHER and never look back!
Don't sell this stock because of CONSERVATIVE GUIDANCE which they give EVERY QUARTER!!!
Sentiment: Strong Buy
RESEARCH ALERT-LinkedIn : Northland Capital raises price target 47 mins ago - AFX
RESEARCH ALERT-LinkedIn: Cantor Fitzgerald raises price target 1 hrs ago - AFX