The drybulk microcap mania continues today! Almost virtually bankrupt Globus Maritime ($GLBS stock) ascended +129% today on no relevant news today. Before the market opened, $GLBS filed a 6-K regarding a possible shelf offering so a run-up in stock price today was just plain idiotic. We took this opportunity to initiate an extremely cautious tiny short position in the name (as you never know how high these microturds will fly) and would continue to short more on any possible $DRYS-like multi-day rip. Unfortunately we did not get a DryShips-like move and the stock was abruptly halted by the Nasdaq for an information request today.
During the halt, $GLBS released a pr detailing their new $5M equity private placement -- issuance of 5M shares of common stock + warrant to purchase 25M shares at $1.60. Yes ... $1.60, when the last trade on the stock right before the halt was $7.32, and fyi the company had only 2.6M shares outstanding coming into today! Major share dilution! Longs got slaughtered again and we covered this turd into weakness.
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Net Profit: $9,608