Does anyone have an explantion why this stock jumped a dollar fifty even after it annouced they were issuing a million new shares at dollar fifty less than the current price? Doesn't issuing new shares: 1. dilute the current shares 2. indicate you are in desperate need of cash I only ask because I have a bunch of puts on this stock
I'm just guessing that it was related to some institution buying shares to fill an index slot or something of that nature. It closed pretty close to flat and it's still in a downtrend so you're probably okay on your puts. Short answer - I have no idea.
whew ... Perhaps the buyers checked the AP, and realized they could soon get it for $24. Wow, that probably was as sure a thing you'll ever find in the markets. It's like knowing the outcome in advance. Glad I added to my position.