Q: With the major devastation of some cities in the Southern USA in late summer I invested in Norbord as they have several plants in the vicinity manufacturing building materials. I invested in Norbord in August and the stock price started to climb in September until 2 things happened:
a fund managed by BAM had a secondary offering of Norbord shares owned by that fund at a selling price of $42.50 and TD downgraded the stock after upgrading it the week before. At approximately the same time Norbord increased it's dividend from $.50 to $.60. With the secondary offering I suspect that a number of the fund holders sold the Norbord shares realizing a quick profit but driving the market value down because a large number shares becoming available (approximately 4-5% of the issued shares). I expected a quick recovery but the TD downgrade seems to have affected the market value. Why did TD downgrade this stock? I think this is an excellent opportunity to buy this stock but I have not been able to find out why the downgrade by TD. Thanks
Mike
a fund managed by BAM had a secondary offering of Norbord shares owned by that fund at a selling price of $42.50 and TD downgraded the stock after upgrading it the week before. At approximately the same time Norbord increased it's dividend from $.50 to $.60. With the secondary offering I suspect that a number of the fund holders sold the Norbord shares realizing a quick profit but driving the market value down because a large number shares becoming available (approximately 4-5% of the issued shares). I expected a quick recovery but the TD downgrade seems to have affected the market value. Why did TD downgrade this stock? I think this is an excellent opportunity to buy this stock but I have not been able to find out why the downgrade by TD. Thanks
Mike