Why CSW Industrials Stock Was Plummeting This Week
Share dilution is one of those stock market nightmares that keeps investors awake when they should be sleeping. Even news of fairly mild levels of dilution can lead to notable sell-offs, a situation that has been evident with the stock of CSW Industrials (NASDAQ: CSWI) in recent days.
Week-to-date as of mid-afternoon Friday, according to data compiled by S&P Global Market Intelligence, the veteran company's stock price had fallen by nearly 16%.
Many investors reacted negatively to CSW's news, delivered Wednesday, that it was floating a new issue of its common shares. The originally planned 1 million share flotation was upsized to 1.1 million. This was priced at $285 per share.
Source Fool.com
