Can anyone make an argument how a retail stock like ARO should be making its all time high? Let’s assume the credit crisis is behind us. Many of the lost jobs are not coming back. Example A – financial services; Example B – auto manufacturers. The total amount of credit available to consumers will not come back to the pre-crash levels and GDP last quarter was -6%. This doesn’t even take into account the excessive government spending and the unintended consequences.
Next up, I ask my readers to do a google news search with the keyword “secondary offering.” Here is a cut and paste of some of the results.
Allegiant Travel announces pricing of secondary offering of 2.3 …
RTT News – 20 hours ago
The company noted that the secondary offering is expected to close on May 11, 2009. The company specified that it will not receive any of the proceeds from …
Allegiant Travel (ALGT) 2.3M Share Offering and Surging April Traffic istockAnalyst.com (press release)
Dow Chemical Company to raise $1625 million through secondary offering
Trading Markets (press release) – 5 hours ago
May 06, 2009 (Datamonitor Financial Deals Tracker via COMTEX) — DOW | Quote | Chart | News | PowerRating — The Dow Chemical Company, …
Texas Capital Bancshares announces secondary offering
Trading Markets (press release) – May 5, 2009
May 05, 2009 (Datamonitor Financial Deals Tracker via COMTEX) — TCBI | Quote | Chart | News | PowerRating — Texas Capital Bancshares, Inc., the US-based …
City National Corporation announces secondary offering
Trading Markets (press release) – May 5, 2009
May 05, 2009 (Datamonitor Financial Deals Tracker via COMTEX) — CYN | Quote | Chart | News | PowerRating — City National Corporation, the US-based bank …
Calpine agrees to sell 20 mln shares in registered public …
RTT News – Apr 23, 2009
… that Harbinger Capital Partners Master Fund I, Ltd. has agreed to sell 20 million shares of the common stock in a registered public secondary offering. …
Anvil Mining to raise $24.5 million through secondary offering
Trading Markets (press release) – Apr 16, 2009
Apr 16, 2009 (Datamonitor Financial Deals Tracker via COMTEX) — AVLMF | Quote | Chart | News | PowerRating — Anvil Mining Limited, an Australia-based …
Washington Real Estate Investment Trust prices $103M stock offering
Bizjournals.com – Apr 30, 2009
Washington Real Estate Investment Trust’s stock fell as much as 5 percent in Thursday trading, after boosting its planned secondary offering and pricing …
Host Joins REITs Raising Cash (HST)
24/7 Wall St. – Apr 24, 2009
The hotel-REIT priced a secondary offering of 66000000 shares of common stock at a price of $6.60 per share. This is actually a substantial discount to the …
ADR Report: ADRs Soar With Chinese Companies In The Lead
Wall Street Journal – May 4, 2009
Casino operator Melco Crown Entertainment Ltd. (MPEL) said its underwriters had exercised the full over-allotment option in its secondary offering and as a …
Goldman Beats, Wants to Use Share Sale to Repay TARP
FOXBusiness – Apr 14, 2009
Coupled with their earnings release, the investment firm raised $5 billion in fresh capital through a secondary offering. The company sold 40650407 shares …
Earnings Preview: Kimco Realty
Seeking Alpha – Apr 29, 2009
On April 3, Kimco sold 84K of its shares for $7.10 in a secondary offering. Investors will want to know if Kimco will still have to raise additional capital …
Northern Trust Raising Cash To Pay Off TARP (NTRS)
24/7 Wall St. – Apr 27, 2009
Northern Trust Corporation (NASDAQ: NTRS) is selling some $750 million worth of common stock in a public secondary offering. …
Fidelity National Financial Ups The Offering Ante (FNF)
24/7 Wall St. – Apr 15, 2009
Fidelity National Financial, Inc. (NYSE: FNF) has priced its secondary offering this morning, and the result is that it ended up selling more stock than …
Acadia Realty Joins REITs Raising Cash (AKR)
24/7 Wall St. – Apr 14, 2009
The company priced its public secondary offering of 5 million common shares at $11.95 per share. That is before any overallotments of 750000 shares, …
My favorite one is Goldman. Perhaps this is similar to when Blackstone went public right at the top of the market. If we are in recovery mode, why are all of these public companies running to the market to raise capital? Why is Goldman looking to sell additional shares at these “bargain levels”?
I read an interesting article today titled “Gangster Government.” I think it is worth a read.
The October gap is keeping a lid on the QQQQs.
If you like to buy and hold, it might be worth putting a little money into FAZ at $5.
I added a little FAZ today as a “junk long” holding. It could go down to $2 (who knows), but at some point in the near future I am pretty confident it will spike again. The volume spiked way up today (potentially capitulation bottom although I would not bank on it) and RSI has been flat lining for over 2 months now. It cannot stay at 30 forever.
Breakout on SEA looks pretty good. RSI is too hot for me to enter but I think a retest is a good possibility. I also already own DRYS and NM. An entry at maybe $11.20 looks like a good place to take a shot.
Today’s trades:
- Ended today flat
- Still holding my large shorts on the indexes. I’m not doing anything until the QQQQs march higher and fill the October gap. This will stop out my QQQQ index short.
- Trimmed junk longs: AIB, DDR, IRE, TIE, MTW
- Closed out BYD. I am now out of all three of my casino stocks (BYD, LVS, MGM)
- Added to my XRT and CVX shorts.
- Stopped out of WFT
- Trimmed UYG and DXO back to their original position size.
- Added
FAZ as a junk long even though I still own UYG.