Buyers Of Offering In Immunomedics Underwater

Immunomedics, Inc. IMMU shares are trading lower by $0.88 (26 percent) at $2.40 in Wednesday's session. Based on the information available, the buyers of $30 million financing at $3/unit are immediately deeply underwater.

After ending Tuesday's session at $3.28, the $3 offering price did not appear to be appear to be a bad deal. However, the Street isn't looking favorable at the issue as a serial underperformer the last few years.

The issue, which made its all-time high in March 2000 at $41.13, never came close to that level again and spent the majority of its time under $5 over the last six years.

Some investors may have interpreted the offering as a last-ditch effort to save the company and decided to part with the issue way below the offering price of $3. In fact, it bottomed at $2.30 off the open and has been slow to rebound. That low coincides with its July 20 low of $2.25.

For now, investors in the issue may want to focus on the offering price of $3 and its upside may be limited as buyers of the offering may looking to break even on their recent purchase.