COI down 55% on proposed stock offering....somethin up??

Discussion in 'Trading' started by gimp570, Jun 7, 2005.

  1. gimp570

    gimp570

    DOwn all on an offering seems like something else is up

    What do you guys think








    Press Release Source: Cogent Communications Group, Inc.


    Cogent Communications Group, Inc. Announces Proposed Common Stock Offering
    Monday May 23, 9:28 am ET


    WASHINGTON, May 23 /PRNewswire-FirstCall/ -- Cogent Communications Group, Inc. (Amex: COI - News), today announced that it intends to raise $75 million through the sale of shares of common stock in an underwritten public offering. The underwriters will have an option to purchase up to an additional 15% of the shares offered to cover over-allotments, if any.
    (Logo: http://www.newscom.com/cgi-bin/prnh/20020204/DCM032LOGO )

    Lehman Brothers is acting as the sole book-running manager, Thomas Weisel Partners is acting as co-lead manager and CIBC World Markets and Friedman Billings Ramsey are acting as co-managers.

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such state. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor offers to buy be accepted prior to the time the registration statement becomes effective.
     
  2. Brandonf

    Brandonf Sponsor

    They are saying that its going to price between $5 and $7 per share.

    Brandon
     
  3. Brandonf

    Brandonf Sponsor

    Priced at $6 fwiw. Pretty stupid on their part IMHO.

    Brandon
     
  4. P/S almost 7.0, negative earnings, D/E > 1, Current Ratio < 1.0 and now this adding insult to injury.

    I'm surprised it hasn't dropped more!
     
  5. Brandonf

    Brandonf Sponsor

  6. What a shafting. They walked it up on no volume, couldnt rip off the street, so took what they could get.

    This was a reverse 1-20 split just recently, which explains much.
     
  7. gimp570

    gimp570

    what a crime...this thing could open at $6...
     
  8. gimp570

    gimp570

    how do we know if the offering has taken place??
    When it does shouldn't,,, this stock go to 6????
     
  9. Chagi

    Chagi

    COI stock sucks period IMO, I've been watching it on and off since it did the big run up in early December '04.