PRTS update: Caution!
PRTS has a filing with the SEC for a shelf offering of new shares worth 200 million. Given that their market cap currently sits at 568 million this is a dilution of over 1/3.
Interesting is the timing of this announcement given earnings is a few days away. Typically on a great earnings call a company may mention a new share release in the earnings call. Given that this is a heavily day traded stock they might be hoping that that dumb retail buys it all up.
I may be reading too much into it, lets see how the SP reacts.
A new bull pennant has formed. And support along the trading fork is holding. It dipped below yesterday on low volume but recovered by EOD. I missed my buy order by 4 cents but now I'm waiting to see how the market reacts to new shares.
Note that the SP has typically been bought up when the 20MA and the 50MA start to narrow and want to meet.
Interesting day ahead.
I currently only have a small amount of shares which have been covering some calls I sold a few weeks past.
Interesting is the timing of this announcement given earnings is a few days away. Typically on a great earnings call a company may mention a new share release in the earnings call. Given that this is a heavily day traded stock they might be hoping that that dumb retail buys it all up.
I may be reading too much into it, lets see how the SP reacts.
A new bull pennant has formed. And support along the trading fork is holding. It dipped below yesterday on low volume but recovered by EOD. I missed my buy order by 4 cents but now I'm waiting to see how the market reacts to new shares.
Note that the SP has typically been bought up when the 20MA and the 50MA start to narrow and want to meet.
Interesting day ahead.
I currently only have a small amount of shares which have been covering some calls I sold a few weeks past.
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