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CardioNet, Inc. (NASDAQ: BEAT) is holding up rather well considering the discount pricing of a secondary offering. The company sold 5 million shares at a price of $26.50 per share. All shares were being sold by selling shareholders and the company itself will realize no proceeds from the sale of these shares.
Citigroup was the sole book-runner and co-managers were Banc ofAmerica, Leerink Swann, Thomas Weisel, and Cowen & Co. Shares areup at $28.19 today on more than 1.2 million shares. This stock hastraded between $26 and $30 for almost all of the last month and shareswere under $20.00 back in April.
Hmm. Insiders and backers selling after a large run when the markethas been challenged. That’s not necessarily a red flag but it also isn’t exactly aringing endorsement for tomorrow. Usually this much discounting for a secondary where the company gets no benefit after a large run up has more consequences. Perhaps the company’s niche is offering it some protection.
Jon C. Ogg
August 1, 2008
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