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PIMCO Covered Bond Source UCITS Message Board

space.elephant 2 posts  |  Last Activity: Jun 7, 2016 10:58 AM Member since: May 27, 2010
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    by space.elephant Jun 2, 2016 2:15 PM
    space.elephant space.elephant Jun 7, 2016 10:58 AM Flag

    Hello DP and JD -

    Thanks for talking me down. My knowledge of corporate doings is limited (I do have an MBA, though -- Morose Bad Attitude).

    I somewhat assumed if the parent company were selling shares it would dilute the share value of the parent company, which, as it owns 70% of MJCO, would then dilute the value of MJCO shares. But that won't be the case.


  • space.elephant by space.elephant Jun 2, 2016 2:15 PM Flag

    I was wondering why the share price took the sudden tumble yesterday, and then I read the release of SEC form 8-K:

    "[MJCO's] board of directors has approved plans to raise ... approximately $37.16 million ... of financing by way of a Qualified Institutional Placement (QIP) of its shares to qualified institutional buyers in India and outside of India. Majesco Ltd announced that it intends to use the proceeds from this offering for repayment of debt, working capital and other corporate purposes, including to fund acquisitions."

    I was liking what this company was doing, including frequent press releases, a big change from COVR's semi-annual press release. And I had more-or-less dismissed Wonderslimman's concerns that "the only ones making $$ are Mgt and employees" and worries about the company being top-heavy. I figured, well, they're out there beating the bushes, they're active, and things seem to be moving in the right direction. And then -- poof! -- this dilution comes, which makes me wonder if they did indeed mismanage their money. But let's hope that this secondary offering is an "investment" that pays off. But right now the stock is sitting at about $1.12 pre-merger for COVR, which is hardly encouraging.

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