TSX:TNT.UN - Post by User
Post by
jdeis2on Nov 15, 2019 10:30pm
233 Views
Post# 30359334
PP Closes Monday
PP Closes MondayIt will be interesting to see if the closing of the PP on Monday (Nov 18) has the same effect as the closing of the last PP closing on September 13. In September the share price dropped 4% after news release anouncing PP at $6.60. Then on Sept 13 when the PP closed, the shareprice moved up and over pre PP levels. The following 2 weeks shareprice hit highs well above pre-financing levels.
The reaction to the PP was the same this time around with the shareprice dropping down to $6.92 (financing price) the day after the announement. Monday wil see the closing of the PP and my expectation is that we will see a similar rise in share price. Several posters were frustrated that the company chose to finance at a 4% discount to shareprice. This is a common practice on any PP in any industry. (maybe they could have gone 3%) but that is spitting hairs.....Everyone had ample opportunity to load up the boat with shares sub $7. I added 25,000 shares to my position as I think it wil receive a quick 3% pop up to pre financing levels in next week or 2. And since this purchase is accrectaive on a per unit basis, the earningper unit will increase meaning the compnay is more profiatble per share than before, hence justifying a higher share price.
One can never be certain how market trades or reacts to events but seems like a high probablitiy that we will see some uplift on monday
GLTA
JIm