I've taken a position in LEN as you've recommended in the past. Today Yahoo Finance ran a story with the headline "Homebuilder Lennar files shelf for $700 million." What does that mean, and how might it affect my investment? (July 18, 2001)

  A shelf offering is basically where the company plans to sell more shares of stock in the future. In other words, there will be more float out there and it can dilute the value of current shares in that it will take more buyers to move the price higher. Now that report came out after the close on Tuesday, but as we saw today, it had no impact on LEN as the stock moved higher on strong volume today. Indeed, BBY announced the same thing a few weeks back, sold back for one session, and that turned out to be a buying opportunity as BBY bounced higher and has been running up from there. It can impact a weak stock, but with strong stocks in good sectors, they shake them off just as they do analysts 'valuation' downgrades.


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