Scorpio Bulkers Inc (SALT): Blue Mountain Capital Ups Stake

Is it a good time to buy Scorpio Bulkers Inc (NYSE:SALT) stock? Andrew Feldstein and Stephen Siderow, the managers of Blue Mountain Capital, seem to think so, having added 182,295 shares to their previous stake in the company. As reported in a recent filing with the Securities and Exchange Commission, Blue Mountain has upped its stake to 9.92 million shares, which gives it control over 7.1% of the Scorpio Bulkers Inc (NYSE:SALT)’s common stock.

Among the hedge fund’s we track, Avenue Capital and its manager, Marc Lasry, hold the largest stake in Scorpio Bulkers Inc (NYSE:SALT). According to its latest 13F Filing, Avenue Capital holds a little over 10 million shares with an estimated value of $89.1 million. York Capital Management also holds a sizable investment in the company with its manager, James Dinan, having initiated a position during the second quarter of this year. York Capital reportedly holds 9.34 million shares valued at $83.1 million. Israel Englander is not so optimistic, though, and has dumped 20% of his stake in Scorpio Bulkers Inc (NYSE:SALT) during the same period of time. As a result, his fund, Millennium Management, is left with 3.17 million shares worth in excess of $28.2 million.

On September 10, Scorpio Bulkers Inc (NYSE:SALT) has announced plans to offer $35 million worth of senior unsecured notes due 2019. On September 11, the company issued a statement in which it announced an increase in size of the offering to $60 million worth of notes. The proceedings from the offering are to be used for installment payments due under the company’s newbuilding program and for general corporate purposes.

With a market cap of $1.1 billion, Scorpio Bulkers Inc (NYSE:SALT) is traded at a trialing Price to Earnings (P/E) ratio of 21.45 and does not pay dividends. For the second quarter of 2014, the company announced revenues of $13.18 million and a loss of $0.11 per share. For the current quarter, analysts expect revenues of $18.3 million and a similar loss per share.

Feldstein and Siderow still like Actavis plc (NYSE:ACT), having boosted their fund’s stake in the company by 62% during the second quarter. Blue Mountain Capital has reported ownership of approximately 914,200 shares, worth $203.9 million, in their latest 13F filing. Eastman Kodak Co.(NYSE:KODK) is another stock Feldstein and Siderow had increased exposure to during the quarter. Their fund now holds 7.46 million shares valued at $182 million.

Disclosure: none.