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What: Shares of electronics manufacturer Fabrinet
So what: The company just announced a secondary offering of up to 6.9 million shares, which would dilute the share pool by about 20%. The stock isn't falling quite that hard because the new float is coming from "certain selling shareholders" rather than from the certificate-minting presses.
Now what: Fabrinet isn't in dire need of fresh cash, and shouldn't get any from this third-party offering. The only entity reported to own enough Fabrinet stock to come anywhere near backing this sale is former JPMorgan Chase
Interested in more info on Fabrinet? Add it to your watchlist.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Fool owns shares of JPMorgan Chase. 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 is investors writing for investors.