JNinPDX

Dryship's Transformational CEO

Couldn’t agree more Bill. Let’s review some other tid-bits:

1. 1998- Raised 175 M in junk bonds for Alpha Shipping. Defaults on the bonds. Strikes up a deal to pay back 37 cents on the dollar and gets to keep most of his fleet.
2. Cardiff, his private company, is owned by: his sister at 30%, and he owns the rest at 70%.
3. His sister, with the initial offerings from DRYS, “purchased” 6 boats for Cardiff, which was then purchased by DRYS. She gets 3 Mill for her troubles.
4. Economou’s nephew (sister’s son) is the founder and largest shareholder of OCNF who recently misstated earnings by a mere 36% (it happens to the best of us), then bought its first two tankers privately from Economou. But this purchase by OCNF was approved by the huge board of 5, which includes his daddy. The CFO quits.
5. Currently, there are two employees of DRYS. Economou and his “internal auditor”. His CFO quit. Does anybody wonder about the legitimacy of their earnings?
6. Cardiff manages DRYS fleet, and they (I mean him and his sister) get 7 Million a year.
7. Page 12 of DRYS prospectus: “Cardiff may give preferential treatment to vessels that are beneficially owned by related parties because Mr. Economou and members of his family may receive greater economic benefits.” He is quoted as saying he can do anything in capital markets as long as it is disclosed.

I’m not saying dry bulk is a bad sector to be invested in, but let’s not pretend Economou is “a man who will become the next Aristotle Onassis and who will create the greatest shipping company on the planet”. He is only interested in himself and his family, not his shareholders. And if you ask me, DRYS is being used as bridge financing so he can get into drilling.

Dryship's Transformational CEO

www.weedenco.com/welli...

Dryship's Transformational CEO

Before we anointing Economou, read the article above. It's all there in writing.

Dryship's Transformational CEO

I find it odd that no one has raised a caution flag or even discussed the HUGE volume which has occurred over the last 5 trading days. The last time volume was this high occurred on 10/30/07, when DRYS was at a major trading top. Subsequently, DRYS fell 40%. However, the level of distribution last October was miniscule compared to what happened last week. This becomes more evident when bringing up the weekly chart.

Another factor one should consider is the dizzying increase in bunker oil prices. Bunker oil is the fuel these ships use and can account up to 50% of operating costs. Bunker prices in 2004 was about $175, it is now about $575. Higher transportation costs will surely have an affect on global demand and regardless of who incurs the cost; the end result will be the same, higher global inflation. The BDI is at ridiculous (not sustainable) levels and will most likely come down, as well as most shipping stocks.