Those who are taking up the new shares have an incentive to sell while the SP is greater than the take up price. Holders of existing shares have a powerful incentive to take tax losses here. It would be a no brainer to sell old shares and take the tax loss- hold on to the new shares- new average price- no wash sale implications. This is not advice- just my summation of what I think might happen. Happy to be contradicted.
I am thinking that the $1b collected in the book build derisks AIZ somewhat going forward.
The SP may become a good buy in- even though the sector is bleeding cash- as a reopening stock. MV could soon be close to EV with low debt. Their peers cannot claim that- just quietly.
IMHO DYOR
AIZ Price at posting:
79.0¢ Sentiment: None Disclosure: Not Held
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