RE:RE:RE:Overnight Offeringmouserman wrote: These offerings are not nearly as popular as they once were. The new ATM sale system selling shares bypasses the need for underwriters to sell big blocks of shares or units.
These underwriters get shares at a discount to the price in the offering, and so can short the commons off the get go and cover with the shares acquired on the cheap.It usually not a bad move to buy a few days after the offering has closed, and get the shares 20 or 30 cents lower than what was paid in the offering. Especially if the markets surges back up.
However lately big premiums are rare , and so LBS even at the closing price of $7.59 today, is still trading at a premium.
Agreed that these offerings are less frequent. For Brompton funds this reflects the fewer number of their splitshare funds that trade at a sufficient premium to allow an offfering -- only SBC and LBS left. Quadravest almost exclusively uses ATMs for its dwindling number of eligible funds -- reflecting their preference for a lack of clarity. GLTA