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: Containership owner Costamare
So what: The company will sell 7.5 million shares at $14.10 in an offering that is expected to close on March 27. Underwriters have the option to purchase 1.125 million more shares, the customary overallotment.
Now what: The market has settled in at almost exactly the offer price, which means the offering was probably done at a reasonable price. The company is planning to use the money to purchase vessels and possibly pay down debt, so I don't see a reason for alarm except the dilution investors face. Existing shareholders may not be happy about the move today, but it provides buyers with an even better value in this high-dividend-paying stock.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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