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Re: aassnnaapp post# 27793

Thursday, 02/16/2017 8:58:11 PM

Thursday, February 16, 2017 8:58:11 PM

Post# of 58072
Motley fool
Crap fluff piece full of half truths and inaccuracies, and people complain about seeking alpha.
https://www.fool.com/investing/2017/02/15/why-are-investors-pouring-hundreds-of-millions-of.aspx

DryShips followed it a few weeks later, announcing that the company had signed a deal to sell stock to an unaffiliated investment company. Under the terms of that deal, DryShips could raise up to $200 million in equity over the course of the next two years, to rebuild its depleted fleet after spending much of the past few years jettisoning assets to repay debt. That said, the company would go on to raise the full amount a month later after finding a deal to diversify its fleet.



Really there was no investment only a fire sale of shares over a few weeks to raise 200 million via another reverse split. No real investment firm would invest in a company planning a reverse split. As for finding a deal to diversify that should read GE found another way of robbing Peter to pay Paul

One thing all three of the recent transactions have in common is that these were private placements with more sophisticated investors like private equity funds or wealthy investors, instead of a secondary stock offering to public investors. These companies likely did this for two reasons. First, a public offering could have sent their stock prices plunging, because it would have caused a massive increase of new supply on the market. Another reason why these companies likely went the private route is that these sophisticated investors saw an opportunity to earn handsome returns if the shipping sector starts to rebound.



Yeah right i believe that is exactly the opposite of what actually happened because it was not an investment massive amounts of shares hit the market and the share price tanked and the O/S despite a 1-8 reverse split stands at 36 million shares.

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