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ramisle

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  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]

    Keep in mind that Knightsbridge, and Golden Ocean were already controlled, and managed, by John F.

    Genco and Baltic Trading were both controlled, and managed, by Peter G.

    And Dryships and Ocean Freight were both managed by Cardiff.
    George E the CEO of DRYS, and owner of Cardiff is also the uncle of Anthony K the CEO and majority owner of Ocean Freight.

    There are anti-takeover policies in place with most of these companies. If they don't want it, it won't happen.
    And as you can see by the management agreements. The CEO's don't want to give up the sweetheart management contracts with their private companies.
    Apr 14, 2015. 07:42 AM | 2 Likes Like |Link to Comment
  • Ocean RIG UDW started at Accumulate by Global Hunter [View news story]

    Well then, I call as my last witness one George Economou, during the Q4 2012 Conference call:

    George Economou - Chairman, President, and CEO
    Thank you, Ziad. In closing, I would like to clarify for everyone, once again that DryShip is a pure shipping company. Two-thirds of its fleet is exposed to the spot market in 2013. We're just holders of Ocean Rig -- of shares in Ocean Rig. It's completely different from us. In other words, DryShips does not have any access whatsoever to Ocean Rig's financial resources.

    But hey, WTH does he know anyway?

    Your quote refers to ORIG as their wholly owned subsidiary. You understand the difference?
    Apr 10, 2015. 11:46 AM | Likes Like |Link to Comment
  • Ocean RIG UDW started at Accumulate by Global Hunter [View news story]
    And when a tanker is used instead of a pipeline for offshore. They use Shuttle Tankers, not Suezmax or Aframax.
    Apr 10, 2015. 10:35 AM | 1 Like Like |Link to Comment
  • Ocean RIG UDW started at Accumulate by Global Hunter [View news story]
    Here I've explained it to your post from this:

    http://bit.ly/1ycbpkk

    I've read every shelf registration, and every SEC filing from DRYS for 8 years.
    You can call it anything you want. But DRYS gets NO profit. And has no access to the assets of ORIG, but for the 78 million shares it owns.

    How would you divide this "profit" to get earnings per share?
    Would you divide it by the 670 million shares of DRYS?
    Or the 131 million shares of ORIG?
    Both?

    You can't.
    ORIG has it's own earnings report. Unencumbered by the dry bulk and tanker fleet numbers.
    What in the world is "derive it's existence", in business terms.
    It derives a dividend, it provides a semi-liquid asset in the form of 78 million shares, that's it

    Enough. Let someone else try to explain this to you.
    Apr 10, 2015. 10:16 AM | Likes Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]
    Here's the deal at SALT:

    We are currently party to shipbuilding contracts, for the construction of 72 newbuilding vessels, of which 63 are for drybulk carriers and nine are for product tankers, for an aggregate purchase price of $2,824.5 million. These vessels are expected to be delivered to us between the second quarter of 2015 and the third quarter of 2017.
    As of December 31, 2014 we had made total yard payments in the amount of $945.0 million and we have remaining yard installments relating to the 78 newbuilding vessels we had as of that date, including the six drybulk vessels we have taken delivery of in 2015 and the seven newbuilding vessels we have classified as assets held for sale, in the amount of $2,109.7 million before we take possession of the vessels. In order to reduce our newbuilding commitments, we have agreed to sell one Kamsarmax newbuilding vessel and have converted nine of our drybulk construction contracts to construction contracts for product tankers, of which Scorpio Tankers Inc. (NYSE:STNG), or Scorpio Tankers, a member of the Scorpio Group of companies, has agreed to purchase four and has the option to purchase an additional two. We had, as of December 31, 2014, a cash balance of $272.7 million and we currently have available debt financing in the amount of $1,370.9 million (including a commitment for a $230.3 million credit facility that is expected to be secured by seven of the vessels in our Newbuilding Program and which is subject to important conditions, including the negotiation and execution of definitive documentation, and excluding a $26.0 million credit facility that is expected to be repaid once the $230.3 million credit facility is drawn) to fund future newbuilding commitments, of which $1,231.9 million is currently available to us to be drawn; however, a significant portion of our remaining commitments are currently unfunded.
    Apr 10, 2015. 10:02 AM | 1 Like Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]

    If you read more of the SEC filing, you will see they have deposited around $900 million for the down payments to build the ships, while the cost of their newbuild fleet was $2.7 billion. Those numbers have probably changed because of the recent selling of some of their as yet to be built contracts for ships. And changing some orders to product tankers.
    The debt will climb as the ships are delivered, and the final payment comes due. That's when the company starts to draw down on those credit lines.
    The list of credit lines from assorted lenders is there, as well as the ships that those lines are assigned to.
    I believe they also still have $271 million cash after the IPO minus the deposits. But, I read so many different filings, you may want to check those numbers.
    Apr 10, 2015. 09:54 AM | 3 Likes Like |Link to Comment
  • Ocean RIG UDW started at Accumulate by Global Hunter [View news story]

    No, your continued insistence that DRYS is a drilling company confirms the fact that you are confused.

    ORIG has no need for tankers. There are no synergies.
    Whether George or DRYS owns the tankers, they are leased to oil companies. Not leased to Drill rig Companies. ORIG has no need for them. And for ORIG to diversify in the tanker business makes no sense.
    Apr 10, 2015. 09:25 AM | Likes Like |Link to Comment
  • Tankships IPO Torpedoed By Sale To CEO [View article]
    You can keep saying it over and over. And you will still be wrong.
    Just because it is a consolidated earnings report does NOT mean That ORIG profits and assets, are DRYS profit and assets. That bottom line you speak of is only on the consolidated report.
    So, how would you figure out the earnings per share?
    Would that be the 670 million shares of DRYS?
    Or the 131 million shares of ORIG?
    Or both?
    Keep reading the SEC filings and you'll get to the part about the "No cross defaults" If you don't understand it, you may want to finally listen to the countless people that have tried to explain this to you.
    You can also find in the SEC reports the complete separation of the assets at the time of the spinoff. The lenders insisted on it. They would not loan the money to ORIG without removal of cross defaults. Which means in the event of a default on the dry ship loans. Those banks cannot touch the drillships.
    You will also see that DRYS can not use the assets of ORIG, the drill ships, as collateral on their loans. The only thing DRYS can use are the shares of ORIG that it owns. Those are the only assets that DRYS owns, (besides the dry bulk, and tanker ship).
    George has stated: "Let's make this clear, DRYS is a dry bulk and tanker company only". "And ORIG is a completely different company"
    DRYS does not get a profit from the drillships, They do get a dividend from the 78 million shares of ORIG that it owns.
    They have a consolidated earnings report because DRYS owns a majority of the outstanding shares of ORIG.
    But ORIG has it's own earnings report, that is completely independent of DRYS.
    I'm sure you will remain stubborn, and not believe me, or everyone else on these boards. So call investor relations, and have them explain it to you.
    A little common sense would help too.
    Apr 10, 2015. 08:56 AM | 2 Likes Like |Link to Comment
  • Ocean RIG UDW started at Accumulate by Global Hunter [View news story]

    You seem confused.
    ORIG did not buy the Tankers.
    And ORIG does not use Tankers.
    ORIG drills the well, and moves on. They never own the oil, they never ship the oil.
    Most likely, the oil company that paid ORIG to drill the well, will use a pipeline to get it to the shore. Either way, it has nothing to do with ORIG.

    George owns tankers, and he manages tankers. There is no affiliation with ORIG.
    Apr 10, 2015. 08:21 AM | Likes Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]
    None of the above.
    I'll become bullish on dry bulk when they refrain from ordering more ships for a year, or more. Not just this knee jerk reaction they've shown over the last few months. I've seen temporary pauses in shipbuilding plenty of times. Deliveries don't shut off like a faucet. And if there is the slightest rise in rates....... watch them. They'll start ordering again. And scrapping will stop.

    SALT made a big splash by going big on ordering.
    New ships are nice. But when rates are this low because of oversupply. Then the higher rates that new ships get is not enough.
    New ships have bigger loans, and pay more in interest.
    SALT is going to have a massive interest expense when all is done.
    And there are other expenses.
    They had revenue of $48 million, and General and Administrative expense of $31 million.
    WTF? That's what happens when you have alot of buying and selling of ships, and not so many working.
    They have a chartered-in fleet, at much higher rates paid, then they can make in their "pools".
    They ordered a huge fleet in anticipation of the "recovery".
    That fleet is arriving this year and next, and the recovery is nowhere in sight.
    Some people claim they see the recovery, but I've heard that every year since 2012.
    Scrapping has spiked for a few months, they've done that before too.
    Now they have changed some of those orders over to product tankers.
    So have many other owners. Look for product tankers to be oversupplied by the time those are built.
    If there is a very healthy recovery in rates, then SALT will be in great position to prosper.
    That's a big IF.
    If rates don't recover dramatically. SALT will be a bloated, indebted, company, that will dilute you to oblivion.
    And the older, more established, low debt companies will survive.

    They've been far too optimistic in the face of massive oversupply.
    Am I too pessimistic? Maybe.
    Dry bulk shipments are at record levels. Coal is lagging. And probably will continue to do so. The oversupply is killing rates.
    Unless Australia slows production of iron ore and Brazil increases shipments to China. Then there are more than enough Capes and VLOC's to handle the increase in iron ore demand.
    And Australia isn't going to slow down. Their domination of the increased iron ore shipments to China, reduces tonne miles.
    VALE's use of VLOC's reduces the Cape demand.

    The new Ultramax's are very nice ships. And will take some of the Panamax demand, which is an inefficient, obsolete ship. But it adds to a massive Supramax fleet that is very young.
    Apr 10, 2015. 07:39 AM | 4 Likes Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]
    I wouldn't call an average age of 7.1 years to be old.
    Some of their Panamax are 10- 14 years old.

    They estimate that their fleet is $500 million overstated on a charter free basis. But still worth far more than the debt held against them.

    They have been upgrading all along. While other companies sold shares just to survive.

    They have three more ships being built, to be delivered in 2016.
    With over $200 million in cash, and never had a problem in financing their purchases.

    All the answers are here:
    http://1.usa.gov/1CAleE4
    Apr 9, 2015. 06:49 PM | Likes Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]

    Diana Containerships is DCIX.

    This article refers to Diana Shipping DSX. And the Dry Bulk sector in general.

    The containership segment has shown improvement over the last several months, although they also face oversupply.

    DSX is Dry Bulk only, but they still own a percentage of DCIX.
    Apr 9, 2015. 12:28 PM | 1 Like Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]
    Sorry, that should read:

    "The private company gets 1% of the purchase price to oversee the building of the ship."

    Maybe this would be a good time to mention that DSX has handled the downturn better than most other companies. And been quite honest and prescient about the future as they saw it. They dropped the dividend, (to much consternation from shareholders), in 2008. And warned that it was time to conserve cash, and sign long term contracts to survive.
    They continued to warn about oversupply while other CEO's were trying to convince shareholders that the recovery was at hand. So those other companies could sell shares to survive.
    Apr 9, 2015. 08:37 AM | 3 Likes Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]
    Diana Shipping has always taken the conservative, longer term charters, even during the bubble days in 2007. Which is also why they didn't have a 10 fold increase in share price. They also paid for ships with more cash and less debt, which served it well in the years since.

    However, some of the charters signed this year include a profit sharing provision. Giving them a base charter rate, but allowing them to participate with a 50/50 profit sharing, in any recovery of rates in the future, for the length of the charter.
    Apr 9, 2015. 08:31 AM | 1 Like Like |Link to Comment
  • Diana Shipping Treading Water Near All-Time Lows Amid Sinking Rates [View article]
    There are a few companies that do the management "in house".
    But, it is more common that the manager is a separate, private, company owned by the CEO.
    Some of the more audacious examples of excess, and I won't name names.
    Back when charters were in the range of $100,000 per day, that 5% was quite lucrative. But, when the new normal for rates dropped below $10,000 some management changed to a flat rate of $2,000-$3,000 per day. They weren't willing to suffer with the rest of us.
    On top of the commissions paid for arranging charters, the management company gets a commission for buying and selling ships.
    Some CEO's also own a private consultant company that gets .1% of all financial transactions. Renegotiating loans, interest rate swaps, FFA trades, etc.... Many CEO's rent office space to the company. And nepotism is more than common.
    The private company gets 1$ of the purchase price to oversee the building of the ship.
    You would think that a well paid CEO would be willing to something other than show up at Conference Calls.

    Not all these companies do it this way, to that degree.
    And they are set up to be holding companies. Each ship is a wholly owned subsidiary.
    This might help answer the question of why do these guys continue to order more ships. Or take on too much debt to buy secondhand ships.
    Oversupply might not be good for the sector. But the more ships a company owns, the more money the private company makes in commissions. Regardless of how much money the public company loses.
    As jaded as that sounds.
    Apr 9, 2015. 08:23 AM | 3 Likes Like |Link to Comment
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