Based on offering size - at a $2.3B market cap, a $300M offering would be 13% dilution so being down 6-7% isn't half bad.
- Gafisa said it expects that the aggregate size of the offering will be between 600 million Brazilian reals (about $308 million) and 700 million reals.
[Mar 30, 2009: Restarting Gafisa as Sam Zell Increases Stake]
[Oct 22, 2008: Sam Zell Increases Stake to Gafisa to 18.7%]
[Aug 17, 2008: Gafisa Earnings]
[Nov 19, 2007: Initiated a Position in Gafisa - Brazilian Homebuilder]
Speaking of foreign stocks... I sold almost all my HDFC Bank (HDB) post the Indian results (on the huge gap up) and people keep piling into it even at 30x forward earnings. I must live in a parallel universe called the fuddy duddy zone.
Momo trading is all the rage it appears - buy high, find greater fool, sell higher. Rinse. Wash. Repeat. I guess HAL9000 does not care about valuation - he just wants stock at any price. I continue to be amazed at the valuations I am seeing people pile into things across the board. Plus some of the junk people are piling in the sub $5 category... but until the music stops it works. So many of these throwaway stocks that trade 50K, 100K shares a day now trading 2-4M on speculative juices. Buy what's up 15-20% today - sell it to next 'investor' tomorrow 15-20% higher. "Investing". Today's hot Chinese small cap theme? Sheep semen... it's hot. Plus there are 1.3 billion Chinese (obligatory throw away line to explain why you love anything Chinese) It's October 2007 all over again.
The company also produces and sells sheep breeding products, including frozen semen, embryos, breeder sheep, and Primalights III hybrid sheep
Long Gafisa in fund; no personal position