Tim,
<<I thought [SST] would run on printing $18 but it just keeps being held back. I hope the market propells it soon.>>
I think Mr. Market is waiting for earnings. If forward guidance sounds good, then I think it will run. However, if it gets back to the high 20s, low 30s, I expect they may resurrect their secondary. I hope it is all equity, but they may need more cash than an all equity offering would give them. They may need to float a convertible (with a fixed strike) in order to get the support of the investment houses (their previous plan was to sell the convertible privately, with a strike of around 30 or 32, if I recall correctly). The problem with that, of course, is that it will cap the stock for awhile, at least until the secondary is done. Then the stock may be capped afterward by the houses getting the private convertible shorting after the stock goes above the strike price.
However, all that should be at least 50% higher than it is now, and it is a lot of speculation as well.
Sam |
