David Braun @PerpetualIncome: "🅟🅞🅡🅣🅕🅞🅛🅘🅞 🅤🅟🅓🅐🅣🅔 Dear team, I opened..."

Germany

🅟🅞🅡🅣🅕🅞🅛🅘🅞 🅤🅟🅓🅐🅣🅔 Dear team, I opened a short on $HESM (Hess Midstream) today, as it dipped over 4% on the the news of its secondary public offering, and I anticipate this to gap down further on the heels of its ex-date coming up tomorrow. See my analysis below: Hess Midstream LP (HESM) is experiencing a dip in its stock price today, February 6, 2024, likely due to the announcement of the pricing of a secondary public offering of Class A shares. According to the information provided, HESM announced the pricing of the previously announced underwritten public offering resulting in gross proceeds of $331 million[1]. It is important to note that HESM will not receive any proceeds from the sale of Class A shares in the offering[1][8]. This type of offering can often lead to a dip in the stock price as it may dilute the value of existing shares and implies an increase in the number of shares available in the market. Additionally, the underwriter has been granted a 30-day option to purchase up to an additional 1,500,000 Class A shares, which could further dilute the stock if exercised[1]. The offering is expected to close on February 8, 2024, subject to customary closing conditions[1]. While Hess Midstream has announced an increase in its dividend from last year, which is a positive sign for income-focused investors[2], the market may be reacting more immediately to the news of the secondary offering. The increase in dividend could be seen as a longer-term positive, but it may not offset the short-term negative sentiment around the stock dilution. Moreover, the stock opened at a lower price than the previous close, which is referred to as gapping down, and this can often be a bearish signal in the market[10]. The stock was trading at a loss of -3.38% from the previous closing as of the morning of February 6[4]. In summary, the dip in HESM's stock price today is likely due to the market's reaction to the secondary public offering of Class A shares, which can lead to dilution of the stock's value and an increase in market supply. Despite the announcement of a higher dividend, the immediate concern over share dilution appears to be the dominant factor affecting the stock price. 👉 Like reading analyses like this? Follow for more, by either adding @PerpetualIncome to a watchlist or opening a copy. Onward and upward! Let me know if you have any questions. Best, 𝓓𝓪𝓿𝓲𝓭 𝓑𝓻𝓪𝓾𝓷 𝘦𝘛𝘰𝘳𝘰 𝘗𝘰𝘱𝘶𝘭𝘢𝘳 𝘐𝘯𝘷𝘦𝘴𝘵𝘰𝘳 $NSDQ100 $GOLD $OIL $DIV (Global SuperDividend US ETF) Citations: [1] www.wallstreet-online.de/nachricht/17764241-hess-midstream-lp-announces-pricing-of-secondary-public-offering-of-class-a-shares [2] simplywall.st/stocks/us/energy/nyse-hesm/hess-midstream/news/hess-midstream-nysehesm-will-pay-a-larger-dividend-than-last-1 [3] stocknews.com/news/mplx-repyy-hesm-3-smart-oil-gas-stocks-serving-gains/ [4] www.investorsobserver.com/news/stock-update/is-hess-midstream-lp-hesm-stock-at-the-top-of-the-oil-gas-midstream-industry [5] stocknews.com/news/et-mrc-noa-ae-ncsm-lng-sdpi-the-magnificent-7-energy-stocks-with-explosive-profit-potential/ [6] seekingalpha.com/news/4062963-hess-midstream-down-4-prices-offering-at-331-per-share?source=content_type%3Areact%7Cfirst_level_url%3Amarket-news%7Csection_asset%3Amain%7Csection%3Aenergy [7] seekingalpha.com/article/4667224-a-6-percent-yielding-dividend-growth-portfolio-for-passive-income [8] finance.yahoo.com/news/hess-midstream-lp-announces-pricing-021000701.html [9] www.wallstreet-online.de/nachricht/17763911-hess-midstream-lp-announces-secondary-public-offering-of-class-a-shares [10] www.marketbeat.com/instant-alerts/nyse-hesm-gap-down-2024-02-06/ [11] stocknews.com/news/gild-incy-otsky-uthr-asmb-gilead-gild-quarterly-earnings-buy-or-sell-signal/ [12] coincodex.com/stock/HESM/price-prediction/' [13] seekingalpha.com/article/4667494-enbridge-antero-midstream-may-be-perfect-combo-dividend-dreams [14] finance.yahoo.com/quote/HESM/history/?guccounter=1 [15] stocknews.com/news/spy-inx-dia-iwm-qqq-did-the-fed-put-a-lid-on-stock-prices/