Castor Maritime (CTRM) Stock Sees Continuous Selling Pressure: Time To Sell?
5:02 pm Thursday, July 01st, 2021
Dilution of shares is bad news for investors but it can help a company in raising much-needed capital for expanding its business and a company that has done so is the dry bulk goods shipping company Castor Maritime (NASDAQ:CTRM). Around a year ago, the company only owned a few vessels but after a lot of share dilution, it has managed to boost the number of vessels considerably.
At this point, it owns 26 vessels and more vessels are apparently going to be added to the fleet. However, the potential growth in the company has not fazed investors and the stock continues to struggle. In this regard, it should be noted that earlier on in the year, the Castor Maritime stock had its time in the sun for some time after it turned into a meme stock.
At the end of the day, the sheer degree of dilution of the stock has possibly kept most investors away despite the fact that Castor Maritime has been growing its capabilities by buying more vessels. When the company was first listed, there were only 3 million shares to go around. However, by the time this year’s spring came along, the number of shares stood at 1 billion.
In just a few years, the number of outstanding shares in the stock shot up many hundreds of times and this sort of share issuance is not something that is likely to appeal to many investors. Hence, the stock has struggled as well.
