TK (O)?

TK (O)?

One of my largest holdings, TK, dropped 13.4% today.  It is now $9.30.  To me, that is a great buy.  The stock sold off because of a secondary offering to pay down 2020 debt.  While it may be a very conservative move, issuing the equity to retire debt, it does not (to me) mean TK is worth 13% less today.

In fact, the price for the new equity is between 9.75 and $10, so $9.30 seems way oversold.

Then TGP and TOO also sold off in sympathy. Not sure that makes any sense. Maybe you could argue that people think the fact the TK wanted to raise $ means TGP is less likely to be paying distributions to parent TK - but that seems like a stretch to me.

I am still sitting on my hands (trying not to trade in January).  But if TK and TGP are both still in this range 2/1, I may add to my positions.