Double top in VIACVIAC announced new shares will be issued diluting the current value of their already overvalued shares. A double top has formed on the chart. Correction ahead as there are multiple options for the underwriters to buy more shares after the initial offering, meaning the dilution could continue.
When a company sells its shares, it's essentially recognizing its share price is higher than it should be and they are taking advantage of it. Take profits and buy puts to take advantage on the investor end.
Bearish MACD cross appearing on the daily chart.
"The company is offering $2 billion of Class B common shares and $1 billion of a preferred stock that is convertible into the Class B common, ViacomCBS said Monday. The shares are the company’s nonvoting equity. The newly issued stock will start trading on March 24, Bloomberg News reported."
"Morgan Stanley and JPMorgan Chase & Co. are managing the offering. ViacomCBS granted them options to purchase up to $450 million in additional shares."
