Diana Containerships Inc (NASDAQ: DCIX) is having an incredibly strong start to the trading session this morning after the company announced a share repurchase program. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The share repurchase program;
- what we’re seeing from DCIX stock as a result; and
- what we’ll be watching for ahead.
DCIX Announces Share Repurchase Program
As mentioned above, Diana Containerships is having an incredibly strong start to the trading session this morning after announcing a share repurchase program. In a press release issued early this monring, the company announced that its board of directors has authorized a share repurchase program.
Under the terms of the authorized program, DCIX will purchase up to $6.0 million of its common stock. In the release, the company reminded investors that there are currently 14,939,602 shares currently issued and outstanding.
The company also said that the timing and amount of any purchase will be determined by the management team and will depend on market conditions, capital allocation alternatives, applicable securities laws and other factors. The program stipulates that repurchases of shares can take place via privately negotiated transactions, as well as open market transactions, or pursuant to a trading plan addopted in accordance with Rule 10b5-1. Finally, the company is not obligated to purchase any specific number of shares under the program and common shares repurchased by DCIX under the program will subsequently be cancelled by the company.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Dianna Containerships, the news proved to be overwhelmingly positive. After all, the share repurchase program shows that the company has a strong belief that it will grow ahead, that is, if it indeed purchases a meaningful number of shares under the program. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:15), DCIX is trading at $1.26 per share after a gain of $0.46 per share or 58.49% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DCIX. In particular, we’re interested in following the story surrounding the company’s share repurchase program to see just how many shares are purchased. We’re also following the shipping sector conditions as a whole as things seem to be improving. Dampening tensions between the US and China in the midst of a trade war and declining oil prices are currently changing the landscape in the space and opening the door to opportunity for this and other companies like it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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