Why Aegean Marine Petroleum's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Aegean Marine Petroleum rose as much as 11% today after the company signed a debt deal.
So what: The company signed a $1 billion secured multicurrency revolving credit facility, including three tranches. This gives Aegean some flexibility going forward, especially when you consider that it held $466 million in short-term debt at the end of last year.
Now what: This may be a regular course of business but investors are cheering the fact that Aegean could line up financing to replace its current facility and the sheer size that's available. Management thinks this will allow the company to achieve profitable revenue growth and sees its balance sheet as a differentiator. I don't think today's news is a reason to buy, but watch for revenue and earnings going forward to see if management's predictions of improvement comes true; that will be the true driver of the stock.
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The article Why Aegean Marine Petroleum's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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