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Tsakos Energy Navigation Limited Message Board

  • big_cup_a_jo big_cup_a_jo Apr 23, 2014 5:59 PM Flag

    dilution again

    Insiders own shares too, why do they keep issuing shares? I'm out! Way to destroy shareholder value jackasses

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    • They explain what they are doing with the money. Short term hit, hopefully long term gain. If you can keep issuing shares at ever higher prices, it isn't exactly a bad thing from the company's point of view. And with a major shareholder buying in to hold their % interest, that 's a good sign also. You too can do the same right at this moment. I'm sitting tight for that 2008, $38.40 (or decent % thereof)

    • Actually you should keep your shares! even if im mad too here's why (my point of view) : tnp is a low volume stock and a big buddy can't buy a lot of shares without moving the stock prices a lot so you call your contact at morgan stanley or whatever to begged the company to issue some shares and they even get a discount on them ! Why you think tnp need to issue more shares two month after the other one? Why not do the the damage all at once? Tnp shares are in demand and will be for a couple of month so stay strong ! Remember the stock rebound 30% from after the first offering low... I know because I bought right after the first offering ;)

      Sentiment: Hold

      • 4 Replies to vlev987
      • vlev987, I'm holding onto all my TNP shares, as Europe's currency crisis has blown over, sovereign bond rates have fallen, and the European economy is slowly on the mend. Also, Greece has recently accessed the capital markets, and that's a very positive sign. Tsakos's LNG initiative has met with early success, and the move into LNG shows the company is seeking growth.

      • My point of view written by a better hand ;) :

        Depending on who is selling, secondary offerings help:

        1) companies to raise more cash for operating and expanding purposes. The companies are in stronger financial position after the offering. You raise when you can, not when you have to.
        2) insiders sell in an organized manner. there is a transfer of ownership from insiders, who would sell on the open market anyway, to institutions, who are more likely to be long-term holders.
        3) institutions to accumulate large blocks of stocks they want to own at prices slightly below market. If they had to buy the same number of shares at the open market, it would probably cost them a lot more. Institutional interest is generally considered a positive sign. If a stock runs from 20 to 40 and has a secondary at 35, the event could be considered a stamp of approval; a justification of the current prices in a way.

      • This argument does not make sense to me. If shares are in demand let the price go up... diluting just because you can is silly. I thought the dilution was tied to some ships they just ordered that were already set to go on charter as soon as they hit the water.

      • 35% insider holdings
        19% institutional
        Would like to see more institutional interest
        But good to see a large insider holding
        And insider buying during last 2 years.

5.03+0.05(+1.00%)Oct 20 4:02 PMEDT