Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of oilfield service company Profire Energy, (NASDAQ:PFIE) fell as much as 14% Friday after pricing a public share offering.
So what: Profire priced a 6 million share offering of common stock, of which 4.5 million shares will be sold by the company and 1.5 million will be sold by members of management. The shares were priced at $4 per share, 21% below Thursday's closing price.
Now what: Shares are still trading above the offer price, which isn't surprising given the massive discount shares are going for. Profire intends to use the money raised to expand its sales force and may also acquire new companies. The key long-term is whether management can turn the extra cash into sales and earnings growth otherwise it'll just be dilution for current shareholders.
Do you know this energy tax "loophole"?
The government wants to push U.S. energy production higher and it's offering tax benefits to help investors profit from the industry. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.