VHI drops on news of 30 million dollar offering...

VHI dropped 6% after a public stock offering. Is this sort of drop what usually happens after a stock offering and as long term investors, should we really care, if VHI is a solid company? Do you think VHI is a solid company. I thought I found it somewhere on Stocktrades but I don’t remember where.

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Asked on December 18, 2024 9:59 am

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VHI may have been featured on one of our free blog posts here, I'd imagine under the healthcare stock page or something maybe.

It is not uncommon for a company to drop down to the offering price of the public offering. In this instance, the company issues shares at $10.90 and the stock dipped to just below this amount on the offering.

It is difficult to say whether or not these offerings are "good" unless the company deploys the capital wisely. For example, strategic acquisitions that ultimately grow the bottom line.

We don't want to see too many of these, and Vitalhub has been known to continually issue shares. It's something I'd definitely keep an eye on.

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Posted by Dan Kent

Answered on December 22, 2024 10:53 am

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