jeetaylor (91.12)

American Axle & Manufacturing (AXL) - Serious Dilution Awaits

October 19, 2009 – Comments (1) | RELATED TICKERS: AXL

I'm not much of a red-thumber, but every now and then I can't help myself.

I red-thumbed AXL a couple months back, and so far it is looking to be an OK decision. I've earned +9 points, but I continue to fear a turnaround with this important parts supplier. I was ready to end this pick and lock in those measley 9 points.

And then I saw this: http://investor.aam.com/secfiling.cfm?filingID=950123-09-51004

Follow the link and you'll see that on Friday, October 16th, after the markets closed, AXL filed with the SEC to offer another $500 million in shares.

AXL's current market cap is ~$340 million.

I'll be leaving that red thumb right where it is.