Bartx's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/327482/comments http://seekingalpha.com/article/116673-dryships-looks-good-even-without-its-dividends?source=feed#comment-370171 370171
After making sure the company paid out HUGE cancellation fees to its affiliate Cardiff, here's the rest of the story, by Dryships herself:

"The company said it is trying to secure waivers or amendments to the contracts in order to postpone payments, but warned that they may not be able to push them off.

Even if the company is able to change its debt contracts, DryShips said the new terms might limit its ability to pay dividends, get more debt or make other capital investments.

DryShips warned that if vessel rates -- already teetering around record lows -- get even worse, it may try to restructure its debt.

If the shipper defaults on its loans, its shares could lost most or all of their value, the company warned.

DryShips also on Wednesday agreed to sell up to $500 million of its shares. The offering will allow the company to sell shares at any time."

Good work gall!

]]> Thu, 29 Jan 2009 14:16:04 -0500
After making sure the company paid out HUGE cancellation fees to its affiliate Cardiff, here's the rest of the story, by Dryships herself:

"The company said it is trying to secure waivers or amendments to the contracts in order to postpone payments, but warned that they may not be able to push them off.

Even if the company is able to change its debt contracts, DryShips said the new terms might limit its ability to pay dividends, get more debt or make other capital investments.

DryShips warned that if vessel rates -- already teetering around record lows -- get even worse, it may try to restructure its debt.

If the shipper defaults on its loans, its shares could lost most or all of their value, the company warned.

DryShips also on Wednesday agreed to sell up to $500 million of its shares. The offering will allow the company to sell shares at any time."

Good work gall!

]]> http://seekingalpha.com/article/116673-dryships-looks-good-even-without-its-dividends?source=feed#comment-369812 369812 Thu, 29 Jan 2009 10:14:21 -0500 http://seekingalpha.com/article/116673-dryships-looks-good-even-without-its-dividends?source=feed#comment-367328 367328

On Jan 27 06:45 AM EconoMarcus wrote:

> "Within weeks after this commentary was first published, DryShips
> announced suspension of its dividend"...?
> Within weeks? If I'm not very mistaken that was within hours and
> the article was then mysteriously removed from seekingalpha within
> another few hours. Sorry Ma'am, but you just lost your credibility
> for me.
>
> Anyway - anybody interested in investing (not trading) in DRYS might
> want to first check how their Chairman, CEO, President and CFO (all
> in one person!) is running his business. Actually I really urge you
> to do this! His recent actions seem to suggest he first of all cares
> for himself rather then for shareholders.

Exactly! After making some horrible decisions with respect to purchasing ships that were owned by his own private company Cardiff (including a string of family members), in september/october 2008, when it was already clear that the BDI was skyrocketing DOWN and the the vessel values were pummeling, he canceled those purchases, and is now paying a hefty toll in cancellation fees: cash money + issuance of millions of new shares.

Who benefits? George Economou and his family members in the shipping business. He canceled three such deals and I believe 2 of them were directly related to Cardiff and his family. They've been paid out MILLIONS (yes, you read well! ) in cancellation fees. In one deal, he provides for a cancellation of about 50 million dollars to THREE family members (yes, 50M each)! Where is the money coming from? From the large cash amount on the balance sheet?

I cannot undo myself of the thought that he did all of this with preconceived ideas. In other words: He had it all set up months ago, when he engaged in the deals. He must have known that under the very particular environment at that time, his purchases would not make sense looking at the short term future of little shipping demand and freight prices that would not even strike a break-even deal. Is there something called as the new 21st century crime? ]]> Tue, 27 Jan 2009 08:02:57 -0500

On Jan 27 06:45 AM EconoMarcus wrote:

> "Within weeks after this commentary was first published, DryShips
> announced suspension of its dividend"...?
> Within weeks? If I'm not very mistaken that was within hours and
> the article was then mysteriously removed from seekingalpha within
> another few hours. Sorry Ma'am, but you just lost your credibility
> for me.
>
> Anyway - anybody interested in investing (not trading) in DRYS might
> want to first check how their Chairman, CEO, President and CFO (all
> in one person!) is running his business. Actually I really urge you
> to do this! His recent actions seem to suggest he first of all cares
> for himself rather then for shareholders.

Exactly! After making some horrible decisions with respect to purchasing ships that were owned by his own private company Cardiff (including a string of family members), in september/october 2008, when it was already clear that the BDI was skyrocketing DOWN and the the vessel values were pummeling, he canceled those purchases, and is now paying a hefty toll in cancellation fees: cash money + issuance of millions of new shares.

Who benefits? George Economou and his family members in the shipping business. He canceled three such deals and I believe 2 of them were directly related to Cardiff and his family. They've been paid out MILLIONS (yes, you read well! ) in cancellation fees. In one deal, he provides for a cancellation of about 50 million dollars to THREE family members (yes, 50M each)! Where is the money coming from? From the large cash amount on the balance sheet?

I cannot undo myself of the thought that he did all of this with preconceived ideas. In other words: He had it all set up months ago, when he engaged in the deals. He must have known that under the very particular environment at that time, his purchases would not make sense looking at the short term future of little shipping demand and freight prices that would not even strike a break-even deal. Is there something called as the new 21st century crime? ]]> http://seekingalpha.com/article/114742-dry-bulk-shipping-recent-bdi-rise-is-heartening?source=feed#comment-355657 355657 I bought DRYS and Genco at much higher levels. So, I am certainly at a loss here. My main fear however are the rumors that these companies may be taken private by their owners (the CEO's)... destroying shareholder value. What is your take on this? ]]> Wed, 14 Jan 2009 12:46:13 -0500 I bought DRYS and Genco at much higher levels. So, I am certainly at a loss here. My main fear however are the rumors that these companies may be taken private by their owners (the CEO's)... destroying shareholder value. What is your take on this? ]]> http://seekingalpha.com/article/112428-is-it-time-to-buy-dry-bulk-shippers?source=feed#comment-340645 340645 So, the question: What IF he takes DRYS private? Do shareholders loose their money or do we remain shareholders of the private company?
]]> Mon, 29 Dec 2008 12:42:28 -0500 So, the question: What IF he takes DRYS private? Do shareholders loose their money or do we remain shareholders of the private company?
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