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Secondary Offering Sinks C J Energy Services Inc (CJ)

Shares of C J Energy Services Inc (NYSEMKT:CJ) have plunged 8.8% on Friday after the oil services company priced a public offering of 7 million shares at $32.5 a piece. In terms of the offering, C&J Energy will sell 6 million shares while a shareholder will divest 1 million shares. C&J expects to raise gross proceeds of around $195 million, which (after fees) management plans to use for general corporate purposes, including funding capex for this year as well as for growth initiatives.

Although shares of C J Energy Services Inc (NYSEMKT:CJ) have fallen due to dilution, bulls believe the stock can do well if crude prices steady and OPEC extends its cuts. They can also do well if management puts the capital raised to good use.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Given that C J Energy Services executed its initial public offering in March 2017, we don’t have any data concerning elite fund holdings as of yet.

The Bottom Line

C J Energy Services Inc (NYSEMKT:CJ) shares are deep in the red today due to a secondary offering. For more reading, check out ‘11 Countries That Consume The Most Oil In the World‘.



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