When companies raise capital to pay down debt or grow their businesses, it can be viewed many ways by investors. Sometimes, de-risking the business is a good idea and can make the company more attractive to shareholders long-term. And sometimes, raising capital to expand operations or make investments for the future is a good idea.
DryShips (NASDAQ: DRYS) has announced two big capital raises in the last few months, and neither one has been viewed positively by investors. There may be good reasons when you look at the company’s history.