- After once again diluting common shareholders by 99% between March and July 2020, Greece-based tanker operator surprisingly announced a one-year moratorium on equity raises.
- Even without dilution, CEO and controlling shareholder Evangelios Pistiolis continue to benefit substantially by extracting sizeable preferred stock dividends, management fees, and commissions.
- In addition, self-dealings continued unabatedly with each vessel purchase or sale triggering a 1% commission to a company affiliated with the CEO.
- With the self-imposed moratorium scheduled to end on August 2021 and material newbuild commitments for 2021 and 2022, dilution is likely to resume later this year.
- Investors looking for exposure to the tanker markets should avoid Top Ships and rather consider investing in some of its much larger and often financially stronger industry peers like Euronav, Frontline, International Seaways, Teekay Tankers, or DHT Inc.
For further details see:
Top Ships: Cheap For Good Reason With Dilution Likely To Resume Later This Year - Avoid