Shares of Nio $NIO+2.5% are down more than 5% in premarket trading after the company announced a proposed offering of $500 million aggregate principal amount of convertible senior notes due 2029 and $500 million aggregate principal amount of convertible senior notes due 2030.
NIO
NIOCapital Structure
Market Cap
10.6B
Enterpr. Val.
94.0B
Valuation
P/E
-3.0
P/S
1.4
Dividends
Yield
-
Payout
-
Isn't the market's reaction a bit overdone? -17.14% is quite a hit.
If the price is above $7 I'm still bullish no less I'll definitely take advantage of this drop and pull back a little bit with the understanding that if we go further down but don't exceed $7 I'll keep buying.
The movement has calmed down a bit, but the chart will probably show it after the open. I think it's going to be pretty volatile. That $10 price is key for a lot of investors.
Investors misinterpret this - I read about share dilution everywhere. That's probably why there is such a negative reaction.
I've read that there may be exchanges for new NIO shares over time, thus increasing the number of shares outstanding, that's the downside.