Manhattan Bridge Capital jumps after secondary offering postponed
Shares of Manhattan Bridge Capital (LOAN) are rising significantly in early trading after the company postponed its planned secondary offering of 2.83M shares. The deal, which is being run by Aegis, had been planned for a Thursday night pricing but has been postponed. The offering may come next week, but that is unconfirmed. Shares of Manhattan Bridge Capital are up over 33% to $3.21 in early trading following the postponement.
They are going to make their 9-11% but then they are also looking to make as much as possible off the shares.
All Ran can really do is give them a minimum price in which he would sell and for all we know he told them $2.00.
If they know they can buy for a 9-10% discount from $2, shouldn't they be selling/shorting at $2.40 ?
Similarly, if a boatload is going to be sold for $2 including commission, why buy now ?
What, if anything, was said during the annual meeting ? Stock sure seemed to tank around that time.
If the CEO would resign or this went to a single class structure, the stock would go up 30% right away.
Its not going to happen.
He isn't giving up control no matter how much he is hurting the rest of us.
And I wouldn't rule out some kind of sweetheart deal where he sells his control state for a premium and the rest of us get the shaft.
I have more respect for shoplifters than this CEO.
It doesn't dilute anyone who buys more. And if you don't, you can sell your right and get something out of it.
Last time I even got 1 overallotment share. So someone else did nothing and I benefited.
Anyone who exercises is not diluted. Except to the extent they don't have a lot evenly divisible by 5.
Rights offerings are the most fair way to raise capital.
A below market secondary or private placement would be much more costly and dilutive to current holders.
Still, I don't see the need for a yearly rights offering.
COVERAGE REITERATED: Hercules Offshore (HERO) reiterated by Howard Weil. Reiterated rating Sector Outperform.
So...if we trade at 15 x $1.21=$18.15
And next year if we trade at 15x $1.43=$21.45.
I think they have a chance to earn $1.50 THIS year. But regardless, the stock seems cheap at $14.87.
And don't forget, we get a healthy dividend while we wait.
After strong sales.
2nd half will be better earnings wise.
1 Street estimate shows $1.21 for this year and $1.43 for next.
Wetnash was right. I never should have bought at $2.26-2.76 back n 08 and 09.
Im just a failure as an investor.
I just figured it using the most dilutive share count and got $5.274 book value.
That's $853,561 divided by 161,839 shares.
I always use the most dilutive share count because its more conservative.
Had a limit order in from when I saw the insider buying at $4ish.
I owned this in the past and made money 3 times.
My prior buys were at lower prices, $3.06, $2.49 and $3.18. And I sold out at $4.74, $4.79 and $4.88.
Frankly, I had thought I paid more in the past bur regardless, it has a nice cluster of insiders buy just over $4 last month, So I would think my chances of at least a $1 move on the upside are good over the next 3-12 months.
Because ALL shareholders have equal rights. Everyone can buy more. And those that don't can sell their rights and get something for them anyway.
My problem is not with the fairness of rights offerings. My question is how come he cant live with the very large amount of capital & cash flow he currently has ?
Why does he need more, apparently EVERY year ?
Its fundamentally fair to everyone equally but when is enough ? Is he going to raise money every year forever with below market rights offerings ?
What if he starts doing them every 6 months ?
How much is enough ?
Becker Drapkin made several times their money and they are in the investment business. So set aside their selling.
Now, count the other insider buys. Are there 5-6 different insiders that have bought ?
All because they and a 70 year old respected CEO wants to con wall street ?
I don't buy it. I think there is a chance that the stock goes to $25-30+.
But, theres also a chance the stock goes down if the market does or they don't have a very good x-mas.
So Im fully aware of the downside risk. Im not sure you are fully aware of yours if you are short.
Did you re-short after covering ?
I know there can be some game playing when it comes to dividends but I didn't think they would take up a stock a buck or so over a 7 cent dividend.
I presume the underwriter is controlling the stock because they stand more to gain by doing so.
Id love it if the stock could go back up so LOAN could sell shares at higher prices. And Id love it if the market would award it a 5% dividend. Im just not sure how realistic that is.
Id sell out at a 5% dividend, Id hold for a 10% dividend.
I don't know enough about what other REITS trade for as far as dividends. I only own 2,. FUR & FSP..
FSP has a 6% dividend. FUR is 4.4% but they are liquidating so the regular dividend should stop after the one that just got paid. (I think)