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What: Shares of dry bulk shipper Star Bulk Carriers
So what: There are a variety of ways for a company to raise money. Selling new shares is one of the ways that investors tend to like least. After yesterday's close, Star Bulk announced it was set to sell up to 19 million new shares of stock, which would increase the current share count by roughly 30%. Today, the company carried through on its promise, announcing that it had sold 16.7 million shares for $1.80 each. The underwriters of the deal still have the option of buying another 2.5 million shares.
Now what: The dry bulk sector in general has been a mess and investors have largely been steering clear of Star Bulk and its ilk. Could there be opportunity in the morass? Star Bulk CEO Spyros Capralos certainly seems to think so. He said he sees the company as "well positioned from a financial and operational point of view to take advantage of the current dislocation in the dry bulk market."
Perhaps that's the case, but it's still hard to be excited about a company selling a huge number of new shares while its stock is languishing in the dumps.
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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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