Transcanada Equity Issue
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87 Posts
Damn new issues sure fill up quick!
If want in, but missed the offering, you might want to try a limit order around $32 or less tomorrow. At the current market cap, the offering represents approx. 7% dilution. Not the worst but enough to affect the price of TRP when it starts to trade tomorrow. TRP closed today at $33.06, but I would be surprised if the price drops much below $32 as it's not a huge dilution - you never know however, so a limit order won't hurt if you are thinking of picking up some TRP
.BTW, TransCanada is using the funds to pay for ConocoPhillips' interest in the Keystone Pipeline System, which is under construction but expected to be one of the largest oil delivery system in North America once complete.
Disclosure: own full position TRP and added a bit more from today's offering...
I'm not interested.
Their earnings have not increased for 3 years per http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=ca:trp&time=20
Yet they increased their dividends by 14% in last 2.25 years. I only like dividends when coupled with low payout-ratios - not increasing ratios.
Take a look at page 33 of this paper from Tweedy,Brown (the link to their site was given by someone else on this BB recently).
Their earnings have not increased for 3 years per http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=ca:trp&time=20
Yet they increased their dividends by 14% in last 2.25 years. I only like dividends when coupled with low payout-ratios - not increasing ratios.
Take a look at page 33 of this paper from Tweedy,Brown (the link to their site was given by someone else on this BB recently).
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17 Posts
Maybe I am reading your example chart wrong but when I switch the parameter to a 3 yr chart, I count 8 increases against 2 decreases .... the 2 decreases occurring during the recent market downturn.
TRP is a solid company that is in fact growing and expanding its assets.
wg
TRP is a solid company that is in fact growing and expanding its assets.
wg
Well, looks like the combination of a market drop and the new offering had a big effect on the price. Could have done better with a limit order below the price of the offering. Day low hit $31.01 so far...If want in, but missed the offering, you might want to try a limit order around $32 or less tomorrow. At the current market cap, the offering represents approx. 7% dilution. Not the worst but enough to affect the price of TRP when it starts to trade tomorrow. TRP closed today at $33.06, but I would be surprised if the price drops much below $32 as it's not a huge dilution - you never know however, so a limit order won't hurt if you are thinking of picking up some TRP
BTW, TransCanada is using the funds to pay for ConocoPhillips' interest in the Keystone Pipeline System, which is under construction but expected to be one of the largest oil delivery system in North America once complete.
Disclosure: own full position TRP and added a bit more from today's offering...
Joined
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7,256 Posts
Yeah, I picked up some @ 31.32 this afternoon, but after it had recovered from the low for the day.
Oh well, maybe there'll be another 300 pt. drop tomorrow
bought in
Bought in at 31.30 today, relatively large position. I think that the future bodes well with these guys, and now's a good time to get in. Could be an interesting ride! As long as they make good use of the equity, I have no problems with some dilution...
Bought in at 31.30 today, relatively large position. I think that the future bodes well with these guys, and now's a good time to get in. Could be an interesting ride! As long as they make good use of the equity, I have no problems with some dilution...
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