Text & Filings#389tier 2experimental liveNew

`item 3 02 unregistered equity short`

cadence: Eventdata: lowshort only

1993

Hertzel, M., Smith, R. (1993). "Market Discounts and Shareholder Gains for Placing Equity Privately." Journal of Finance 48(2), 459-485. Wruck, K. (1989). "Equity Ownership Concentration and Firm Value." Journal of Financial Economics 23(1), 3-28.

Read the paper →

What it checks

When a company files an 8-K disclosing a private equity placement (often at a discount), it signals balance-sheet pressure and dilution. Short for 2-6 months.

Mechanism

8-K Item 3.02 (Unregistered Sales of Equity Securities) reveals a PIPE or unregistered share issuance, typically at a discount. Hertzel-Smith 1993 documents negative long-run drift after PIPEs (signaling weak balance-sheet conditions and dilution). Short the post-filing window for 60-180 days.

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag, or once a multi-family blend that includes it earns a champion slot.

Signal rule

Any 8-K Item 3.02 filing on T+1 fires SHORT, hold 60/90/180d.

Data dependencies

daily_prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
sec_8k_events
Item-coded 8-K events (1.01 material agreements, 4.02 non-reliance, etc.).

Expected edge

Paper alpha: -4 to -9% over 6-12mo
Paper window: T+1 to T+180d

Hertzel-Smith 1993; -4 to -9% over 6-12mo on PIPE/unregistered issuance.

Related families

item 2 03 debt obligation shortText & Filings

8-K Item 2.03 (Creation of a Direct Financial Obligation) discloses new debt issuance. Spiess-Affleck-Graves 1999 document negative long-run drift after debt offerings (consistent with capital-structure timing where managers issue debt when overvalued or facing constraints). Short the post-filing window for 60-180 days.

item 1 02 termination material agreement shortText & Filings

8-K Item 1.02 (Termination of a Material Definitive Agreement) flags the loss of a material supply, distribution, license, or partnership contract. McConnell-Servaes 1990 and the broader event-study literature show negative drift on growth-option destruction.

Explore `item 3 02 unregistered equity short` on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

Open universe with this filter →Browse all 388 families

item 3 02 unregistered equity short