Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of ocean treasure-hunter Odyssey Marine
So what: Today, Odyssey Marine priced a 4.8 million share offering at $3.05 per share. If you're wondering why that's good news when the stock closed at $3.12 yesterday, we're on the same page. Here's what I think is happening: The company originally announced the sale on June 7, and investors have been running for the hills ever since. Between the announcement date and yesterday's close, the stock had fallen 25%. Now that the offering has been priced and investors no longer have to worry about exactly how much dilution the new shares will create, they're free to look ahead to the company's plans for spending the new cash.
Now what: Also on June 7, Odyssey announced that it had executed a charter agreement to use Russia's Yuzhmorgeologiya for its search for the sunken SS Gairsoppa. That sunken ship, I should add, supposedly has 7 million ounces of silver on board.
Odyssey Marine is not the kind of company I'd ever want to invest in, but it's certainly an exciting company to read about. With its dilutive share sale now in the rearview, the intrepid investors willing to gamble on the treasure hunter are free to once again focus on that excitement.
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Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.
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