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: Bulk goods shipping company Star Bulk Carriers Corp. (SBLK 0.45%) stock fell as much as 13% in early trading. As of this writing shares are down about 11% today. 

So what: After the market close yesterday afternoon, Star Bulk Carriers announced a $150 million secondary share offering, which it would use for its newbuilding program (new vessels) and "general corporate expenses." Today's price drop is a clear reaction to the dilution this share offering will cause, as the company's market capitalization fell by about $150 million in total. 

Now what: The seagoing dry bulk goods carrier business is tough right now. The industry is still relatively oversupplied with vessels, and demand has been slow to fully bounce back from the recession, as many parts of the world continue to face slow economic recoveries. Star Bulk has 27 new vessels on order, all of which are scheduled to be delivered this year and next. This will increase its fleet size by almost 40%, and frankly the company is probably going to need to offer more shares or take out more debt to pay for them all. 

The company is building for the future, but there's a lot of risk in expanding so quickly, and into a market that's already oversupplied with vessels. It looks like Star Bulk is betting on an acceleration in the trend of demolition of older vessels creating demand for newer, faster, cheaper to operate ships like the ones it is having built now. 

Before you invest on this price drop, it would be a good idea to get to know the industry, the players, and the dynamics. Chances are, it's going to remain rough seas for the next year or more before things start to improve, and you'll be better off knowing what you're getting into. There could be opportunity, but there's also risk, and you should understand that risk before you jump in.