It looks like my suspicions were correct. GMR added 34% more shares to our accounts yesterday, but only took a 10% haircut in price. It is now down another 6% today. In theory the price should have fallen the same 34% as the increase in shares, but it hasn't yet. I expect the market to realize the dilution that occured and adjust down by that 34% level.
That is why the stock is down 6% today. The market will figure it out. I just think we have figured it out quicker.
I am going to sell a few more lots and buy back cheaper in a few weeks.
I still think this is a wonderful long term stock. I actually read somewhere that oil is now in a "Contango" in the futures market, which means it is now profitable to buy pysical oil, store it and then sell it a future point. The Feb/March futures are trading at like $60 with the current oil price around $40. There are stories that people are actually leasing ships (like GMR's) to just store the oil, not ship it.
Good luck.
Give me a ring if you have questions.
CK
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