After a reverse split, 1 for 5 ??, and then a share offering soon after, present shareholders get shafted and the co. balance sheet gets solid. -Div. will be reduced on a post split/offering basis. Share price would be in my estimation about $4- $4.50 with a div. of 5 cents a share/qtr post action. Yield about 5%. Round number guesses but the general action is probable if things don't get better fast. Present shares adjusted would then be worth 80-90 cents post action.
Why would this company do a reverse stock split. There are only 60 million shares outstanding. There is no reason to do a r/s. All this company needs is a world economy that sees some stabilization which will allow bulk rates to improve. An r/s makes no sense.
for the bank to refinance them shows a vote of confidence.......
the cash flow for sblk is good enough to increase the fleet if the right opportunity presents itself. I look for star bulk to maintain its divvy, the market will have to increase the share price to a more reasonable yield, that will bring the share price over two bucks.this is a strong buy