Thursday, August 20, 2009

Hampton Roads can't find a buyer for equity (HMPR

AlphaNinja - If there's another reason for pulling their planned 32.5million common stock offering, I'd love to hear it, but they offered absolutely NO explanation.

Hampton Roads Bankshares (HMPR) announced just a couple weeks ago that it planned to raise money by selling common stock.:

NORFOLK, Va., Aug. 3, 2009 (GLOBE NEWSWIRE) -- Hampton Roads Bankshares, Inc. (Nasdaq:HMPR -News), the financial holding company for Bank of Hampton Roads and Shore Bank, today announced that it has commenced an offering to sell up to 32,500,000 shares of common stock in an underwritten public offering.

The last night they pulled the offering, with no explanation:

NORFOLK, Va., Aug. 19, 2009 (GLOBE NEWSWIRE) -- Hampton Roads Bankshares, Inc. (Nasdaq:HMPR -News; the "Company"), the financial holding company for Bank of Hampton Roads and Shore Bank (the "Banks"), today announced that it had withdrawn a proposed public offering of up to 32,500,000 shares of its common stock.

Sometimes companies pull an offering if the stock drops massively and they don't want to "sell low," but in this case the shares are higher than they were when the plans were announced to sell shares.

Without any info to go on, I'd say that investor appetite for common stock (versus other securities higher up the capital structure) was just not there.

A look at their loan portfolio. (shareholders' equity is at $299million, down 13% from December. The more that shareholder equity declines, the less of a haircut these loans would need to erase any stockholder value...)


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