Imperial Petroleum: Shares Sell Off Following Dry Bulk Carrier Spin-Off - Hold

Summary

  • Following last week's spin-off of junior dry bulk shipper C3is, shares of both Imperial Petroleum and C3is have sold off.
  • Decline in Imperial Petroleum's common shares might be a result of spin-off traders exiting the stock.
  • In contrast, the massive sell-off in C3is appears related to a registration statement for a proposed equity and warrant offering filed with the SEC on Monday.
  • Offering has the potential to dilute existing C3is common shareholders by close to 80%.
  • Reiterating my "Hold" rating on Imperial Petroleum but assigning a "Sell" to C3is given the very real risk of substantial near-term dilution.

Densa Hawk Veleta bulk carrier ship at Govan dock in Glasgow

richard johnson

Note:

I have covered Imperial Petroleum (NASDAQ:IMPP) (NASDAQ:IMPPP) previously, so investors should view this as an update to my earlier articles on the company.

Since its late-2021 spin-off from StealthGas (GASS), Imperial Petroleum's strategy to

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.

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