Why Shares of Tellurian Plunged 38% in June
Giving back a large portion of the 55% gain they had made through the first five months of the year, shares of Tellurian (NYSEMKT: TELL) plummeted last month. The developer of natural gas infrastructure saw its stock fall 38% in June, according to data from S&P Global Market Intelligence.
Among the prospect of shareholder dilution, an analyst's bearish take on the stock, and falling energy prices, investors felt little confidence that this natural gas stock could energize their portfolios.
It didn't take long once June began before Tellurian's stock started to slip. On the first of the month, in fact, the stock closed nearly 6% lower than where it had ended on the previous day. Fearing the prospect of share dilution, investors clicked the sell button after learning that Tellurian had offered $500 million in senior secured convertible notes due in May 2025 and that have an initial conversion price of $5.724.
Source Fool.com
