SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Andrew Vance who wrote (4258)3/8/1999 9:16:00 AM
From: Carl R.   of 4697
 
Rights offerings do not always put a lid on the stock, but they can. If there is sufficient buying pressure, the stock can rise despite the rights offering. But a rights offering acts like a massive number of calls outstanding. As expiration approaches, if the rights are way in the money, the holders don't mind coughing up the extra cash. On the other hand if they are close to the money, the buyers aren't sure that they want to put up the money, and sell them, with the effect that the stock gets driven towards the strike price, or just below.

Ideally if the price has recently been above the strike price, you get a window of opportunity to buy within a day or two of expiration at about the strike price or slightly below. Then the day after the expiration the stock returns to its prior trading range.

The problem here is that VEBA has yet to set the expiration date and strike price. Plus the fundamentals aren't getting better. So the stock continues to drift.

Carl
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News