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 Scorpio Bulkers Inc (NYSE:SALT) plunged as much as 26% today after the company announced a share offering.

So what: After the market closed yesterday, Scorpio Bulkers announced that it was going to sell $200 million of common stock with a possible $30 million more if underwriters exercise their overallotment option. That's a massive share sale for a company currently worth $310 million, and shows just how bad the dry bulk shipping business is right now.  

Now what: The release said that management expects to use the funds from the offering to fund its new building program, adding even more supply to the market. The only positive I can see is that management has "reserved for sale up to $15 million of Common Shares to Scorpio Services Holdings Limited and certain executive officers." Since this was an initial filing, we still don't know if they'll exercise that option or what the pricing of shares will be, but maybe management will end up putting their money behind the company.

Still, such a big offering from a company that's losing money is a red flag for me, and I'm avoiding this stock today.