Wednesday, January 28, 2009

Send in the Secondarys

Wednesday afternoon greetings to all! After this wonderful rally in equities, please do not lose focus on the capital structure of your holding that just hiccupped, because a secondary offering may send your shares spiraling down the barrel, again... You should to do a quick analysis of the capital structure/balance sheet of every company you own. IF you identify the stock(s) that are in greater need of liquidity/cash (which could be said for most companies today), then you need to take profits or else suffer the consequences of being diluted.
When a company needs liquidity, it can issue more shares at a specific price on a specific future date, therefore called a secondary or follow-on offering. This strategy is... ---------------------------- If you would like to receive this and future posts and market analysis, please send an e-mail to Psychologyofthecall@gmail.com and make sure that your e-mail client will not consider messages from that address as spam.

1 comment:

Anonymous said...

Are those the Lehman guys gasping for air?