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Invesco Emerging Markets Sovereign Debt ETF V.PCY


Primary Symbol: PCY

The investment seeks to track the investment results (before fees and expenses) of the DBIQ Emerging Market USD Liquid Balanced Index (the underlying index). The fund generally will invest at least 80% of its total assets in U.S. dollar-denominated government bonds from emerging market countries that comprise the underlying index. The underlying index measures potential returns of a theoretical portfolio of liquid emerging market U.S. dollar-denominated government bonds.


ARCA:PCY - Post by User

Comment by Bottleson Aug 04, 2011 9:22pm
294 Views
Post# 18906502

RE: RE: Opportunistic Private Placement..

RE: RE: Opportunistic Private Placement.."Glad to see you agree with me somewhat Bottles with regards to a possible financing below $3."

I did not agree with you. PP's follow certain guidelines and protocol's when it comes to pricing an issue. If publicly traded, the most common and accepted practice is an average of the stock price over x amount of time. If a 20 day average is employed, a rough but fair estimate is $2.50. If NKL continues to trade higher, then the average price can easily surpass $3.00 per share. That is, pricing a PP is market based and or supported by some measure of the market (ie: so as to substantiate some measure of valuation). To both offset risks and entice participants, percent discounts and or warrants are oftentimes bundled into the offering.

As yourself a simple question:

If the PP is priced at $5.00 per share and the shares trade at $3.00 per share, why participate? Would your money not be better invested if you simply purchased the shares in the open market?

"I don't recall too many "accredited" investors partaking in the higherpriced financings with PCY.  I believe any institutional participationocurred in the very low price range there."

How could you? That kind of information is not publicly available. But rest assured, anyone who participates in a PP must substantiate that they are "accredited" (ie: like documenting and signing a statement of net worth).

That said:

Every PP undertaken by PCY, the stated reasons why (or purpose) and their subsequent outcomes are well documented in the archives that can be found on PCY's web site under those things called a news release.

If PCY and or NKL undertake a PP, I TRUST Mr. Lee as to the necessity and the ability to make good on the same. That is, and given time, any dilution encountered will eventually be offset by the value created.




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