Investors Snatch CVRR 13.8% Lower Than Its Secondary Stock Offering

Looking back to 92 days ago, CVR Refining, LP (NYSE: CVRR) priced a 6,500,000 share secondary stock offering at $26.07 per share. Buyers in that offering made a considerable investment into the company, expecting that their investment would go up over the course of time. In trading on Thursday, bargain hunters could buy shares of CVRR and achieve a cost basis 13.8% cheaper than those buyers, with shares changing hands as low as $22.46 per share. It should be noted that investors at the secondary have collected $0.96/share in dividends since the time of their purchase, so they are currently down 10.2% on their purchase from a total return basis.

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Secondaries can often present buying opportunities for bullish investors interested in purchasing shares, because the sudden extra supply of stock tends to require that the offering be priced at an attractive discount to where the stock had previously been trading before the offering announcement. At last check, CVR Refining, LP shares are currently trading down about 1.5% on the day. The chart below shows the one year performance of CVRR shares, versus its 200 day moving average:

Looking at the chart above, CVRR's low point in its 52 week range is $20.16 per share, with $28.55 as the 52 week high point — that compares with a last trade of $22.52.

The current annualized dividend paid by CVR Refining, LP is $3.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 08/07/2014. Below is a long-term dividend history chart for CVRR, which can be of good help in judging whether the most recent dividend with approx. 16.8% annualized yield is likely to continue.

According to the ETF Finder at ETFChannel.com, CVRR makes up 2.85% of the PowerShares Dynamic Energy Exploration & Production Portfolio ETF (AMEX: PXE) which is trading lower by about 1.6% on the day Thursday.