This is not exactly a stock pick, but it is individual stock question...
I've owned a we bit of AMPH for a while...not enough to worry about it even if it went to zero...its been a very slow performer for many years (also very thinly traded)
Anyway, today the company announce a secondary stock offering of 2,100,000 shares at $16.50...and the stock goes up to $18.50 +/-...but I can't figure out why.
Why, if they are going to dump 2M more shares on the market at $16.50, would people be rushing to buy for $18+/share? I sold 1/2 mine, thinking it'll probably drop back down...but maybe I don't understand what is going on....anyone? DSX offers more shares and (as one would expect) the stock drops...why is this doing the opposite?
I've owned a we bit of AMPH for a while...not enough to worry about it even if it went to zero...its been a very slow performer for many years (also very thinly traded)
Anyway, today the company announce a secondary stock offering of 2,100,000 shares at $16.50...and the stock goes up to $18.50 +/-...but I can't figure out why.
Why, if they are going to dump 2M more shares on the market at $16.50, would people be rushing to buy for $18+/share? I sold 1/2 mine, thinking it'll probably drop back down...but maybe I don't understand what is going on....anyone? DSX offers more shares and (as one would expect) the stock drops...why is this doing the opposite?