
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:
Are those the Lehman guys gasping for air?
Post a Comment