This has to be the first time I've seen a stock SPLIT its shares (Monday!) and than do a share offering within a week's time. But that is what NetLogic Microsystems (NETL) has done. What a market.
- NetLogic Microsystems, Inc. plans to offer 3.2 million shares for sale, according to a news release issued Tuesday.
- The company also said former shareholders of RMI Corp., which the company bought last year, plan to sell 2.7 million shares. The company will not receive any proceeds from the sale of shares by the selling stockholders.
- NetLogic Microsystems, which makes processors used in Internet and corporate networking equipment, said it will grant the underwriters the option to buy about 885,000 more shares to cover overallotments.
I only had a starter position of 0.4%ish in this case, so I will buy some more NetLogic on the news, as the stock driftly perfectly to the 20 day moving average. I'll layer on a 1% allocation here and I guess in the George Costanza market ("whatever decision I make, I will do the opposite - with great results"), NETL will rally on the actual dilution. This is completely backwards to how I'd normally do things...
Long NetLogic Microsystems in fund, no personal position