More activity in second hand ships and the article says that scrapping is down significantly this week over last week. Lower scrapping is bad for the supply but maybe the industry knows something which makes second-hand ship prices worth more. I get the impression something is happening.
There's some talk that China might be stimulating growth so maybe that's creating some optimism in the industry.
Second hand vessel prices are low but with Star Bulk's market cap being about $40 million, it probably wouldn't be in shareholders' interests to dilute to buy more vessels. There are fourteen vessels at Star Bulk right now and doubling the shares would give enough money to buy only one or two vessels.
The question of dilution was brought up at the conference call and was answered by Mr. Capralos saying they're keeping the options open and that shareholders will have the possibility of maintaining their share (presumably if it happens, shareholders will have the option of buying to avoid the dilution of their position...an option investors always have anyway).
I thought Spyros responses to both the dividend question and dilution issue were a very amateurish reply. Suggesting that the dividend at today's price is "quite substantial compared to what they get in the market!" Is he kidding me who cares about a 1.5 cents dividend when your stock is down well over 50%. It's quite substantial because your POS stock is .51 cents. My 13 year old son could respond better!!! You could take that 1.2 million dollars and buyback almost 3 million shares today. And regarding a dilutive event post reverse split, yes they are doing a reverse split come the AGM meeting in 10 days, he says he won't surprise anyone with a overnight offering. Hmmm, do you believe this guy? I don't..