Originally Posted by
Kirks gusset
One has to take the Kjos hype with a large pinch of salt, if the "offering" is so attractive and "oversubscribed" why are shares falling like love sick angels.
The current shares needs to fall a lot more. They are priced at 52 nkr and the new ones will be issued at about 6 nkr. After that existing shareholders will be left with only 5% of the total. So the new shares will cost the investors 6 each and there is a lot of headroom from there to 52. A leveling out at even just 8 would give a quick tidy profit. No wonder they are popular among Kjos monied friends. Then the entusiasts and amateurs buy in and will be the ones taking the pain when Norwegian again needs money. Some predicts this last event within 6 months if there isn't a decent summer recovery.
Some big name initial shareholders in Flyr did just that, a quick exit for profit, just a few days ago. Launced at 5, quick rice to 7, inital names sold and now down to 5.50.