Intel (NASDAQ: INTC) just increased its share offering. The company, which had recently announced a plan to issue $15 billion in additional shares, has upped this offering to $20 billion.
Not surprisingly, the chip stock's price pulled back following the initial announcement. However, the shareholder dilution that comes with this move could benefit long-term shareholders. Here's why.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Intel's stock dropped by just over 4% in Monday trading as it announced the original $15 billion share issuance. Hence, it was a quick change when it decided to raise that offering to $20 billion within 24 hours. The company has issued additional shares at $95 per share, and it expects to net around $19.7 billion from the sale. That dilutes the stock by slightly more than 4%.
Intel plans to use the proceeds for "general corporate purposes." The company explained that that would mean spending on capital expenditures (capex) and working capital.
#billion #NVIDIA #offering #flashing
Not surprisingly, the chip stock's price pulled back following the initial announcement. However, the shareholder dilution that comes with this move could benefit long-term shareholders. Here's why.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Intel's stock dropped by just over 4% in Monday trading as it announced the original $15 billion share issuance. Hence, it was a quick change when it decided to raise that offering to $20 billion within 24 hours. The company has issued additional shares at $95 per share, and it expects to net around $19.7 billion from the sale. That dilutes the stock by slightly more than 4%.
Intel plans to use the proceeds for "general corporate purposes." The company explained that that would mean spending on capital expenditures (capex) and working capital.
#billion #NVIDIA #offering #flashing
3 months ago
