I wonder how the market would have reacted if they had announced they were taking on more debt to finance the acquisition of ships, instead of issuing more shares. Their debt-to-equity ratio is already quite low compared to the industry average (0.15 vs ~1), so they could take on a bit more leverage. I tend to think the market would have been more forgiving of that.
They have financed their captial investment plan purely on the back's of its shareholders, and at their expense in a one-lump charge, effectively.
Management has not shouldered the responsibility of securing debt . It has chosen not to distribute the cost of captial expenditures over many years, which would be a reasonable action to take.
Whether EXM is not "looking out for shareholders" interest, or whether EXM has limited access to credit markets, Im not sure......but in either case the stock performance today speaks for itself.
Ironically, with today's announcement, if the 5.9 M shares went public today, EXM management has already forfeited $35,000,000 in light of the $6 loss in share price. Its very unlikely that EXM share price will recover to yesterday's $28 value anytime soon.
For what ever its worth, management seems to have bungled this, and its an expensive bungle for all involved.
Please not that I reduce my sentiment on EXM to HOLD from BUY.
> Please not that I reduce my sentiment on EXM to HOLD from BUY. <
i actually interpreted the sentiment change as a sell. thanks for the tip - their blurb from the sec filing that at least a million shares can go at open market was enough to convince me the secondary will NOT be near today's price.