CKXE Attempts to Stabilize After Horrible Equity Pricing
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CKX INC (NASDAQ: CKXE) is trending higher after this morning's weakness related to the pricing of a 20 million share equity offering at $11. The deal was quite a mess as the stock sunk from the $24 level, when the offering was first announced, to its lows of $11.35 this morning. The weak pricing and raised offering size (originally 15M shares) has left a bad taste (and shrunken portfolio) in the mouths of investors. Traders who were looking for a sell the rumor - buy the news reaction to the pricing and shorts that are covering appear in control this morning.
Where the stock goes from here remains a mystery as any bid support from day traders and short covering can only last so long. If pro-Sillerman investors return to the stock or use the recent plunge to average down, one could see a bright near-term future for the stock. On the other hand, investors may simply have had enough with all the Elvis and America Idol hype and will look elsewhere.
Where the stock goes from here remains a mystery as any bid support from day traders and short covering can only last so long. If pro-Sillerman investors return to the stock or use the recent plunge to average down, one could see a bright near-term future for the stock. On the other hand, investors may simply have had enough with all the Elvis and America Idol hype and will look elsewhere.
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