So anyone who got cashed out can get back in if they want.
8k on 7/24...
On May 8, 2014, Steel Excel Inc. (the “Company”) increased its holdings of the common stock of API Technologies Corp. (“API”) to 11,377,192 shares through the acquisition of 1,666,666 shares on the open market. Upon acquiring such shares the Company held approximately 20.5% of the total outstanding common stock of API with a fair value of approximately $26.6 million.
Where did you get 2.5 million ?
I don't recall seeing that figure anywhere.
What happened is the underwriter manipulated & shorted as much stock as possible and then made a deal where they sell the 1.754 million.
The underwriter is never going to lose.
And the company is probably only going to net about $2.50 per share after all expenses.
The current price is a modest discount likely reflecting the underwriting discount. In other words, if the discount is 8%, the underwriter pays $2.622 per share.
So wholesale is $2.62 and retail is $2.85. No free lunch.
In hindsight, I should have sold out at $4.
Why didn't someone tell me that was the top ?
A follow-on offering (often but incorrectly called secondary offering) is an issuance of stock subsequent to the company's initial public offering. A follow-on offering can be either of two types (or a mixture of both): dilutive and non-dilutive. A secondary offering is an offering of securities by a shareholder of the company (as opposed to the company itself, which is a primary offering). A follow on offering is preceded by release of prospectus similar to IPO: a Follow-on Public Offer (FPO).
It was originally $10 million or 2.83 million at $3.53.
Maybe they knew they would never sell that many but just went larger trying to sell as much as they could ?
Its a fair offering in that its not dilutive to current holders based on book value anyway.
Not really. Its less than they were looking to sell. But $2.85 is a reasonably fair price I guess.
But its not trading.
pricing of the offering ?
I haven't been here for 10 years. I first bought 1/28/13 at $44.40.
I missed reinvesting the first dividend but have since then. And I bought 125% more at $40.51.
This is my first utility. Im inclined go reinvest dividends long term unless the stock were to rally to $55 or something. Then I might stop the reinvestment.
Im not inclined to add more beyond the DRIP except on significant weakness.
I would probably like a larger position here but not sure on the timing of buying more.
Oh and Im doing the dividend reinvestment via my broker which is different than doing it via SO, I believe.
You cant really have store managers contacting buyers.
if every manager spent 5 minutes a week on the phone with a buyer, that would be 69 hours.
So there has to be some kind of way to divide the stores into 4-8 different segments based on area income or past sales rather than every store getting the same stuff no matter if its in a poorer or a richer area.
They don't need to sell below book value is my point. I would hope they don't price the offering below $2.50 at an absolute minimum. But for it to sell at $2.50, the market price would have to be higher.
Ideally, they sell it at $3.50+.
I am not sure what kind of yield a low priced REIT will command because I don't have a lot of experience with REITS, particularly under $5.
Part of me thinks it will command a premium for being low priced but part of me thinks the market will assume its junk because of its low price and price it at a discount.
I don't know.
Tresfind probably knows but he isn't saying.
They burned $340k last quarter.
Sounds like they will get getting $250k more from a settlement in May.
So the concern is them burning cash before they find a merger.
I would hope they would be able to burn less going forward.
But, it appears our CEO is earning in the $290k a year range and the CFO about $252k.
Both seem to high for me as the company has no business.
I guess the next 10q will be around Aug 15th.
I presume he is being brought on because he may have access to some potential deals.
There really isn't anything to report right now. Ive seen these kind of shells go on for a year or so before finding something to invest in.
The right deal is more important than a quick deal.
Becker Drapkin has a lot invested here. I think we will all make money in the long run.
Nice to see it up to $1.24 today. Was there an SEC filing that I missed ?
And HLF has a marketcap of $6 billion but its a total fraud company.
Neither has anything to do with BH. And its egomaniac ceo.
It does NOT dilute. You gain as much as you lose. We are buying shares at $250 which is below book value so are only diluted if you don't participate or you own say 4 shares which wouldn't entitle you to a right.
We are on the same footing as insiders so its fair to everyone. Except those who do nothing. Or own lots not equally divisible by 5 I guess.