Imperial Petroleum: Relentless Dilution To Continue For Common Equityholders - Sell

Summary

• Over the past 15 months, common shares have been subject to relentless dilution. Aggressive open market sales have resulted in share prices tumbling to new lows recently.
• In contrast, business fundamentals for Imperial Petroleum's tanker fleet have never been better with charter rates and second hand vessel values sitting at multi-year highs.
• On the recent Q4 conference call, management openly stated its intent to continue shareholder dilution for the time being.
• Discussing weaker-than-expected fourth quarter results and ugly terms of the company's most recent related-party deal.
• Given the company's stated intent to continue common shareholder dilution, frequent related-party deals and the likelihood of a near-term reverse stock split, even the most speculative investors should abstain from chasing Imperial Petroleum's common shares.

Dikuch

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.