Would some or all of the strength in HOS shares relate to the pending sale of additional equity? The Company and its investment bankers obviously want to sell the new shares at a high price. This opportunity to raise capital so much more cheaply than the original IPO is a bonanza for the Company.
This is not the time to jump ship. HOS will deploy its tank barge fleet to haul crude or refined petroleum products to serve America's energy demands wherever these fuels are produced on the East coast or Gulf coast. With so many Gulf coast refineries idled and damaged, HOS will have longer hauls to move product to market. Also look for a heightened use of OSVs to get crews, supplies, and replacement equipment to drill rigs in the Gulf. There will be high demand for vessels like those in Hornbeck's fleet. All in all, higher demand means higher day rate, and ultimately enhanced profitability.