I wouldn't be terribly surprised if the offering caused the
price to go up. It's quite possible PCYC has lined up some good]
news releases to go along with the offering; also, if the company's
programs are as strong as some of us think, there may be institutions
willing to pay a bit of a premium for a big chunk. And, investment
bankers are allowed to manipulate the stock price following the
offering, generally supporting it for awhile. We are entering a
time of year when biotech traditionally gets increased attention
(anyone know when the H&Q conference is going to be?).
I am not too familiar with the rules associated with the S3... but
it seems like the market is not taking 22.3125 to be a firm maximum
price for the offering. Actually, the accompanying text indicates
that it is based on an average of recent prices, and is not any
kind of binding ceiling.
All that said, I would likely sell any substantial pop over the
current price... low 30's for sure... unless there's radical news.
But, I may be more bearish on the overall market than many of you.
I have seen many offerings where the price went up 10-20% for
awhile, then the stock got whacked. I have also seen a few (OK, one) where
the stock just kept climbing for months (though this one eventually
got whacked, too). Incidentally, I canceled a limit sell at 28 in
case the offering comes in above that... I don't think it's very
likely to, but not impossible. (If you disagree, try buying 2 million shares
of this incredibly liquid stock without affecting the price -g-.)
Cheers,
HB |
