Acacia dropped 6% premarket from 110 to 103 this morning after it announced its offering at 100.
The price drop doesn’t add up, even though the volume is huge. The stock popped 11% on news of solid prelim results AND share offering. That means the people who bought the stock didn’t care enough about the share offering to not push the stock up 11%. Now maybe the offering came in a little lower than expected but the share price on the day of announcement was around $100. This couldn’t have taken many big players by surprise.
That’s why this drop of 6% today on volume seems like a manufactured or overreaction event and price should return back to 110 fairly quickly.
I bought another 10k worth at 103.
We’ll see if my logic holds
*update market close: price closed at 100 just below the 50 day. I sold 200 shares leaving me with 275 or around 27000 in holdings.