GOGL - Castor Maritime: Expect Recent Gains To Be Short-Lived Given Ongoing Shareholder Dilution

• Small dry bulk shipper continues to aggressively grow its fleet at the expense of common shareholders.
• Two recent offerings resulted in outstanding common shares almost tripling. Exercises of in-the-money warrants could cause share count to balloon to almost 600 million.
• Shares are trading at a substantial premium to estimated net asset value while proven market leaders are still changing hands at a discount despite the recent charter rate recovery.
• Expect shares to give back the majority of their recent gains due to the massive warrant overhang and the likelihood of further capital raises.
• A short position could yield decent results but investors need to be wary of momentum stampedes like experienced on several occasions in the recent past.

For further details see: