Friday, June 5, 2009

Daily Dilution


AlphaNinja - Western Refining (WNR) is about to sell 23million shares, dilution on the order of 33% to existing shareholders! So why is AlphaNinja giddy? Because down here, the shares have no positive news baked into them, so some extra liquidity can help. AND, when things do turn around, the reward will go to the (newly expanded family!) shareholders, instead of debt-holders. Yeah, selling at the lows defies good conventional wisdom, but these aren't conventional times...

Unclear is who is doing the selling - the company to raise money, or big insiders to cash out? Looks to me that most of the $$$ is going straight to company coffers, so cheers!





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