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sinedo

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  • Will New Vessels Boost Diana Containerships? [View article]
    No surprises, but the analysis is welcome.
    Optimism is necessary when you run a business, and DCIX has made the bet that the world economy has bottomed. They keep the dividend as long as there might be a need to sell shares to raise capital. Making believer they are paying a dividend out of earnings is silly, but these shipping companies feel they have to keep paying them, for some reason.
    Gold miners did that for a long time, but finally wised-up that the divvy was negative to survival.
    I have found that, generally, the worst fears seldom materialize and that it pays to be optimistic. However, it is a gamble, because unforeseen events always happen.
    Debt is the killer that can't be held back when times are hard. The author would have mentioned it, if it was a problem. The balance sheet looks OK to me.
    Hope I'm correct and the economies improve.
    Regards,
    Aug 27 02:23 PM | 3 Likes Like |Link to Comment
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