No, it had nothing to do with the dilution. Note that there were 3 dilutions in 2007 and for the first two Euroseas went nothing but up. For the third, it was already dropping like a rock at that point, and so was the whole sector. Look at the biggest competitor DRYS, from $130 to under $60, a drop of more than half just like Euroseas (from $21.5 to $9.)
There's 2 answers to the question: 1. Look at a graph of the BDI. Dry bulk shipping largely follows the BDI and expectations for its future. 2. The market as a whole. In case you didn't notice, the economy took a little hit and the Fed has been dropping rates at every opportunity in recent months.
These two things happened at the same time which was a bad piece of luck.
I am getting impatient for them to start spending some of that money they collected though.