Seeking Alpha

Ship Finance International (SFL) -5.6% premarket after announcing a public offering of 6M...

Ship Finance International (SFL) -5.6% premarket after announcing a public offering of 6M shares. SFL intends to use net proceeds to invest in new assets within the shipping and offshore sectors and for general corporate purposes.
Comments (3)
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    I like the expansion plans, but obviously this dilutes existing shareholders.
    2 Oct 2012, 02:42 PM Reply Like
  • FirstConsultant
    , contributor
    Comments (2) | Send Message
     
    2:20pm, down further and may decline another day as well. Not sure if that will make it a buy on the new diluted basis.
    2 Oct 2012, 03:27 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Dilution, based upon 16.00 a share, and the previous existing number of shares, suggests that the additional shares would reduce valuation to about 13.32 a share. That assumes no change in the market cap. I would be tempted to buy more under that level.
    2 Oct 2012, 03:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector