This certainly isn’t the first time this has happened and there are other days where Secondary stock offerings have been more, but we have several stock offerings from companies hitting the capital markets today to the tune of over $1 Billion on almost 50 million shares. This often acts as a hidden volume trade on the markets, and it can act as a liquidity suction cup if this occurs on a low-news days.
For reference CSCO trades 51 million shares per day and at $27.00-ish this accounts for some $1.37 Billion, YHOO trades about 29 million shares on average and at $27.00-ish accounts for some $781 Million in average trading. This probably won’t bleed the markets but it is definitely worth monitoring as all the companies that can sell shares will try to do so before we get into the Holiday spirit and the stock market goes on auto-pilot.
Here is a summary of the deals today:
| Stock | Shares(M) | Price | $Million |
| FSNM | 2.75 | $25.00 | $68 |
| MNKD | 20 | $17.42 | $348 |
| PNM | 5 | $30.79 | $152 |
| SWSI | 4.6 | $25.50 | $117 |
| VOLC | 7.5 | $16.75 | $125 |
| WPZ | 7 | $38.00 | $266 |
| Totals | 46.85 | $1,076 |
Jon C. Ogg
December 7, 2006
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