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: Kodiak Oil & Gas
So what: With the market's positive reaction on Tuesday to an announced offering of 20 million shares, the company decided to up the offering to 25 million shares. If there's money to be had, they might as well take it.
Now what: Priced at $5.50, the market is already giving initial buyers a nice profit at a current price at $6.32. The closing date is expected to be Dec. 14, and unless the stock collapses before then, I think we can assume the underwriters will purchase the optional 3.75 million shares -- bringing total proceeds to $158 million before fees. With this kind of a reaction to a secondary offering, the sky looks to be the limit for Kodiak.
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