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Health and Healthcare

CardioNet Defies Prior Secondary Trends (BEAT)

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By Douglas A. McIntyre Updated Published
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Cardionet_logoCardioNet, Inc. (NASDAQ: BEAT) is holding up rather well considering the discount pricing of a secondary offering.  The company sold 5 million shares at a price of $26.50 per share.  All shares were being sold by selling shareholders and the company itself will realize no proceeds from the sale of these shares. 

Citigroup was the sole book-runner and co-managers were Banc ofAmerica, Leerink Swann, Thomas Weisel, and Cowen & Co. Shares areup at $28.19 today on more than 1.2 million shares.  This stock hastraded between $26 and $30 for almost all of the last month and shareswere under $20.00 back in April.

Hmm.  Insiders and backers selling after a large run when the markethas been challenged.  That’s not necessarily a red flag but it also isn’t exactly aringing endorsement for tomorrow.  Usually this much discounting for a secondary where the company gets no benefit after a large run up has more consequences.  Perhaps the company’s niche is offering it some protection.

Jon C. Ogg
August 1, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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