Quick QXO Update
How things changed since my first report.
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No sooner did I write an alert on QXO, warning of a possible short-term risk for the stock, that within a week its shares miraculously popped higher by as much as 30%... on no new news. It has since settled back, but still...
With that kind of out-of-left-field rally – or was it a good old fashioned squeeze? – it’s no wonder the company announced a $1 billion stock offering. Demand was so great it has since been upsized to $1.3 billion. Proceeds are going directly to pay down a portion of QXO’s $5 billion in debt – most of which is tied to its just-closed acquisition of Beacon Roofing, billed as the first step in what the company hopes will serve as the platform for its rollup of the building supply industry.