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 wireless broadband provider Clearwire
So what: The embattled Clearwire said it would sell 175 million Class A common shares at $2 per share, which is about 12% below its Wednesday closing price. When you couple that clear discount with management's decision to also increase the size of the offering by $50 million, it's no surprise that investors are concerned about the deal's likely dilutive effects.
Now what: I wouldn't be so quick to pounce on this plunge. The cash-strapped Clearwire also said that its underwriters have a 30-day option to buy an additional $52.5 million of Class A stock and that its majority owner, Sprint Nextel
Interested in more info on Clearwire? Add it to your watchlist.