Lexmark Intl. (LXK) Message Board

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Technology Stocks : Lexmark Intl. (LXK)

LXK 40.49

0.0%

Nov 29 4:00 PM EST

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To: maven2010 who wrote (26)	1/22/1997 11:36:00 PM
From: Jackie Goodson	of 160

I just lost my LXK on options exercise. I am looking to buy back on a pullback. The secondary offering should present a buying opportunity. The secondary offering will be for 10-11.5 mil shares which is 13% of the presently 75.7 mil shares outstanding. The offering will be priced at, or just below, market. That cannot help but take away buying demand for a short period of time until the market can absorb the extra shares. These shares, held by insiders and other large shareholders, have not been on the market before. So, we go from 10 mil shares not in the market to 10 mil shares up for sale - can't help but be a drag on the stock for a while. The good news is three fold: 1. These are not additional shares, therefore will not be dilutive to earnings. 2. While the secondary offering will create a drag on the stock for a while, the effect is not near the negative impact that would result if the sellers dumped 10 mil shares on the open market. 3. If you want to buy, or buy more, the secondary offering should give you a window of opportunity.

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