Slate Grocery REIT T.SGR.UN

Another BOTCHED Deal - RECEIPTS DOWN!!

[indoubtgetout]

DO NOT BUY ANY NEW ISSUE OR NEW SECONDARY OFFERINGS UNTIL SUCH TIME AS THEY GO UP AFTER THE ISSUE RATHER THAN DOWN.    TELUS ANOTHER GOOD EXAMPLE OF A BOTCHED SECONDARY.

SO LONG AND SHORT - DO NOT BUY ANY NEW ISSUE OR SECONDARY OFFERINGS AS THEY WILL JUST TRADE LOWER THAN WHAT YOU WILL PAY - WAIT AND DO NOT BUY THE IPO OR SECONDARY AT THE ISSUE PRICE - WAIT UNTIL THEY TRADE - YOU WILL GET THEM CHEAPER!!!!!!!!!!

UNDERWRITERS OF THE RECEIPTS ARE SELLING THEIR OVERALLOTEMENT AT A LOWER PRICE THAN ISSUE AS THEY ARE STILL MAKING MONEY DUE TO THE COMMISSIONS THEY WILL EARN.

[logicandinertia]

That isn't how an overallotment works. A greenshoe allows the underwriters to sell up to 15% more shares for up to 30 days after the close of the deal.  In essence, they become short the stock, in this case 1.7 million additional shares, by "overselling" it.   If there is enough demand at prices above the offering price, then the company issues shares at the issue

[indoubtgetout]

Really!!??   Well, you need more education.  The underwriting commission is 4% and the issue price is $11.65 then the underwriters can sell the overalloment at whatever price they want to whom ever they want but of course they will not want to sell at a price lower than $11.184 as they will lose money.   So, the receipts are sellinig around $11.45 so the underwriters are

[logicandinertia]

that isn't true.  the underwriters cannot sell the overallotment at whatever price they want.  it has to be done at deal price . you are right regarding the bought deal though (in this case, the base 11 million shares or so).   that is not what i was referring to.    Yes, in canada, the underwriters take the risk when they price the bought deal that the order

[indoubtgetout]

Sorry but that IS TRUE!!   They can sell the shares to themselvers and then sell into the market, especially if what they buy is under 10% ownership in the company.  Net Net they would still make money.   For example, if I get 4% commission, my true cost is 4% lower - yes I have to buy them at the issue price but I can then sell them at any price I want!!! I know as I used