Hey guys, I am new to investing and I read an article that said Tetra Technologies priced 19.4 million shares at $5.15. I have $8500 invested. Will TTI go back up?
Maybe this can help you: http://www.fool.com/investing/2016/12/09/why-tetra-technologies-inc-stock-slumped-13-today.aspx
Hard to tell with companies that most people are not familiar with. You can read news articles, like the one @Z-OldEurope posted above, and you can try to do some technical analysis. Just real quick, it looks like it tried to drop below recent support but ended up closing at support so, at least it didn't stay too far below. The Finviz chart also has some lines drawn in for you In the future, you probably shouldn't invest in something without doing some research. Reading an article is not enough. You're sticking a large portion of your hard earned money into something on a whim. You can correct me if I'm wrong, but I get the feeling that you're new to investing and unfamiliar with how it all works and finding good times to enter certain stocks. You'll want to learn how to do some technical analysis (how to read charts) so that you can find good entries and learn to limit your losses.
I read the article on fool.com. The company said it would sell shares for $5.15. That being said, How can the shares drop even more on Monday? If you look at the 3 month chart, it surged 16% and 20% after falling. Wouldn't it make sense to surge at least 24%?
It appears the company was selling shares not buying them.That is called dilution and a stock intially and usually will fall on that news. That does not mean at a later date it might go up after the dust has settled. This morning, TETRA announced that it is expanding the size of its previously announced secondary offering of stock, with attached warrants to buy even more stock. According to management, TETRA intends to sell as many as 22.3 million shares of its common stock at $5.15 per share (assuming underwriters exercise their overallotment options in full) and to attach to these shares "warrants" entitling the buyers to purchase an additional 11.2 million shares at $5.75 per share, should they so choose. It's also worth noting that this offering threatens to flood the market with as many as 33.5 million new TETRA shares, on top of the 92.7 million shares already outstanding. If all the new shares that can come to market do come to market, current shareholders stand to see themselves diluted by about 36% -- and receive less than $180 million in new cash for their company in exchange. http://www.fool.com/investing/2016/12/09/why-tetra-technologies-inc-stock-slumped-13-today.aspx
Actually it went down in AH but on low volume..I suggest that you google stock dilution. One of my stocks dropped on the same scenario Friday but not as bad because then offering was much smaller. TTI diluted by 36% which is huge. I wish you luck on your investment. If they sure up their balance sheet and other good things with the proceeds, it could go back up but it will probably take some time to do so
It went from $6.23 to $4.70 then rose to $5.88. Between Oct 19 & Dec. 2, someone made a lot of money. I am sure some people thought investors were going to lose all their money during that timeframe, but it was possible to make a 20-25% return.
Actually, the volume was considerably high. "Tetra Technologies Inc. (TTI) traded on unusually high volume on Dec. 09, as the stock lost 8.98% to close at $4.56. On the day, Tetra Technologies Inc. saw 16.7 million shares trade hands on 47,641 trades." https://www.equities.com/news/tetra-technologies-inc-tti-moves-lower-on-volume-spike-for-december-09
If I was you I would consider getting out of it and putting the money some where else.Like I said it takes some time for a stock to recover from dilution not saying it might get a little bounce on Monday or even drop more. The next time around you might want to put a stop in place on your trade and you won't get hurt as bad,
Brokerages Set Tetra Technologies Inc. (TTI) Target Price at $7.96 https://www.com-unik.info/2016/12/0...echnologies-inc-tti-target-price-at-7-96.html
2016 May 9th-http://www.prnewswire.com/news-releases/tetra-technologies-inc-announces-first-quarter-2016-results-300264807.html June 16th-"announced today that it priced its previously announced underwritten public offering of 10,000,000 shares of its common stock at $5.50 per share." http://www.prnewswire.com/news-rele...icing-of-common-stock-offering-300285780.html Result of the public offering- down 16% & up 18%. Oct. 21-http://ir.tetratec.com/phoenix.zhtml?c=73435&p=irol-newsArticle&ID=2220030 I think it is going to be no different than the past year. Investors are overreacting to the dilution. I understand that when Tetra floods the market with additional shares, the price will go down but TTI is already down over 22%.
Let me give you last bit of info. When news comes out about dilution the short sellers immediately go into action and drive the price down, There is nothing the shareholders can do about it. This is a screen shot from my L2 and look at the right part of the screen. The shorting continued all the way into the close of after hours trading. It was that way all day long.
No, $5.15 is now the cap, next stop is at $1.94.. Just get out. Don't hesitate and don't look back. Use the cash to buy quality. You don't know what you're doing so quit buying the stock of companies that don't have any earnings. Stick with the stocks on the S&P 500 or the 30 DJIA stocks. This stock is a POS, has been for a long time. Quit reading the news. It's propaganda published by those who want your money.
Where is your evidence that it is going to go to $1.94. For the past 5 years, it has never been this low. The last time it was a $1.90ish was January of 2000.
March 10, 2009 - $1.94. It's been in a trading range for a solid 2 years; enough cause to effect a move to zero. The weekly chart shows a Sign of Weakness in the right hand side of the range. If this gets follow thru that is where it will ultimately go. However, the daily chart shows that Fryday printed a ton more effort for the same or less price result indicating that a buyer stepped in. Was this a shake out or does he have more inventory to sell? I expect there will be a bounce. Watch the quality of that bounce. If it rolls over get out, then decide to get back in again after a retest of the low. Weekly sticks: Daily Sticks:
Thanks for the information. How much of a bounce will there be? If it goes up 10%, I could put a stop loss at $4.80.
Up 10% would be about $5.00. That's about right, if it's going to bounce. It will need to take out and hold Fryday's high of $5.11 to even consider it as back in the game. The low of Nov 8th at $4.40 was tested down to 4.36. There was undoubtedly a ton of sell-stops under 4.40 that got bought by somebody. Probably a crap load of public shorts got into the momo game too. So the big boys can make some money taking it back up and selling those shorts the shares they picked up under 4.40. Remember, the game is not longs against shorts. It's about the smart money harvesting cash from the public (long or short). Most of the public is ignorant of the game and believes everything they read on the interscreen. But you have to be prepared for if it goes lower before it bounces. You gotta figure there are now sell-stops under 4.36. If you can be at the screen on Monday morning I'd watch the pivot price (h+l+c)/3 = (5.11 + 4.36 + 4.56) / 3 = 4.68. It should bounce to 4.68. Then you need to judge.
