Shares of Compass Diversified Holdings are slumping by 8.63% to $16.72 on heavy volume in mid-morning trading today.
The company, which operates by acquiring controlling interests in businesses that it believes operates in industries with long-term macroeconomic growth opportunities, said it expects to receive approximately $105 million of gross proceeds from the offering.
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Underwriters will be granted a 30-day option to acquire an additional 900,000 trust shares from Compass Diversified Holdings. The offering is expected to close on or about November 14.
Separately, TheStreet Ratings team rates COMPASS DIVERSIFIED HOLDINGS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMPASS DIVERSIFIED HOLDINGS (CODI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."