Reading more, beyond the bottom line... Definitions and Reactions to "Secondaries"...
But why do companies offer this additional stock?... Simple really. They need more money... to reduce existing debt, or to fund expansion or acquisitions or, in some extreme cases, it's a last-ditch effort to save the company from failing. Reactions: Implications, or resulting effects and reactions by the market, to secondary offerings can vary widely, depending on a company's explanation for why they are doing it. If big money managers and analysts like the explanation given, for example for a business expansion or to fund further research and development in a high-growth area, then the stock price could actually go up on the news of a secondary offering. However, if a company has not been doing well, and it is obvious that they are offering additional stock just to raise money to keep from going into default, then the stock price could likely sink on the news, given that it will dilute the value of existing shareholders' stock. And that becomes an unfortunate sign for many that it's time to get off the sinking ship before its stock price goes down even further, and they decide to sell. Continued below...
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This is a harder piece of information to track down, so we continue to search for it for you. Wouldn't it seem logical that investors would want to see a complete track record of secondary offerings beyond just the initial IPO? All we were able to find were IPO sites that list calendars and IPO dates - past and present. Therefore, we are recommending the search below, by site, as you find sites that you believe may track these secondary offering announcements.
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Google: Tricks to search any website directly, or as the source: A little-known trick using Google's regular web search is to enter either a site-specific (site:wsj.com) or source-specific (source:wall_street_journal) operator, then type in your search terms. Here are some examples:
Wall Street Journal only site search: site:wsj.com Intel+"secondary offer" This is great because it only presents results (i.e., pages that have the exact phrase, "secondary offer" and MUST also have the word "Intel" on the page. [link: here >] Use that link to try it for your own stock!
Source search (where the WSJ paper my be cited as the source, but on other sites): Example: source:wall_street_journal "Intel announces"+secondary [link: here >] Results: For Intel, this confirms that a secondary offering has not been done in a while, but provides links to several other announcements that include "Intel announces" on the pages. (these are GREAT tips to research any site, for any company - also for related company news!)
Additional Sites to Use: In place of wsj.com, try the following financial/business news sites that we use on a regular basis (remember, regular web search, NOT under "news"): Given that Intel did few secondaries, we used Wells Fargo as an example below:
site:money.cnn.com [CNN MONEY] [link: here >]
site:moneycentral.msn.com [MSN MONEY] [link: here >]
site:businessweek.com [BUSINESS WEEK] [link: here >]
site:bloomberg.com [BLOOMBERG] [link: here >]
site:cnbc.com [CNBC] [link: here >]
site:forbes.com [FORBES] [link: here >]
site:marketwatch.com [MARKETWATCH] [link: here >]
site:hoovers.com [HOOVERS] [link: here >]
site:morningstar.com [MORNINGSTAR] [link: here >]
site:thestreet.com [THESTREET.COM] [link: here >]
site:fool.com [THE MOTLEY FOOL] [link: here >]
site:barrons.com [BARRON'S] [link: here >]
site:smartmoney.com [SMART MONEY] [link: here >]
site:ft.com [FINANCIAL TIMES] [link: here >]
site:businessinsider.com [BUSINESS INSIDER] [link: here >]
site:bizjournals.com [BIZJOURNALS] [link: here >]
site:wsj.com [WALL STREET JOURNAL] [link: here >]
site:businesswire.com [PRESS RELEASES - BUSINESSWIRE] [link: here >]
Note: We have tried to find a single site that provides historical secondary offerings and we have only found news and data on Initial Public Offerings (IPOs), but not on the secondary (i.e., follow-on) stock offerings. We're still working on it though, and we'll update this page when we find it!
Findings: We conducted the Wall Street Journal search above, and also searched the Intel company website Investor Relations page (i.e, www.INTC.com), and searched through the SEC filings, and we could not find any record of the last secondary offering, or any announcement of an upcoming offering that could affect the share price.
The opposite of diluting your stock's value (as secondary offerings can do), is to ADD VALUE to your stock, which is what the next step describes...distributing profits back to shareholders in the form of Dividend & Yield...
More about this in Step 280...
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