Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Looks like GE is stealing the rest of the shares for almost nothing.
KR - the new CEO is for Heidmar. If I remember correctly GE paid himself $100 million for his share of Heidmar when he sold it to DRYS. Now he bought the remaining 49% for $17 million. I wonder which purchase more at arm's length?
So GE sold DRYS another ship that was losing money, profited no doubt from the sale, and got a sweet heart lease to boot. Classic GE. And what was the other part of the deal one might ask? Oh yea, he is able to buy the vessel back when the market improves in another sweet heart deal.
I wonder why the pps is at $3.86?
A lot of anx in shipping right now. BDI isn't recovering yet and there isn't any word on the US/China trade deal. Throw into the mix Vale's dramatic reduction in iron ore shipments due to dam closures and the near-term picture isn't all that rosy. I am not looking for any shipping stock to have a rapid rebound this week without a news catalyst.
DRYS is trending about where I thought it would from back in January...
Post 57681
JB - Maybe. Shipping is cyclical and all shippers are drifting lower right now. Probably won't improve much until mid to end of next month. In the meantime, it wouldn't surprise me if DRYS dips back into the $4's again. My guess, and it's just that, is we will see 1/3 off the recent $7.22 high. That would put the pps somewhere around $4.75.
Wonder why DRYS pps hasn't reached book value yet? Investor sentiment regarding GE might have something to do with that. GE is the ever present risk associated with the company and will likely be the largest reason why DRYS won't get to or above book:
https://www.hellenicshippingnews.com/where-will-dryships-inc-be-in-1-year/
Lazarus - Go over to EGLE with this post.
I-Man - the fractional share was likely after the reverse split, which resulted in a fractional share. I don't recall if DRYS paid cash for he fractions. ?
JB - Maybe. Shipping is cyclical and all shippers are drifting lower right now. Probably won't improve much until mid to end of next month. In the meantime, it wouldn't surprise me if DRYS dips back into the $4's again. My guess, and it's just that, is we will see 1/3 off the recent $7.22 high. That would put the pps somewhere around $4.75.
A better question might be has GE completed the buy back yet? DRYS hasn't filed since 12/17. Assuming the buy back isn't complete, this could be headed back into the $4's. Between Asian holidays coming up and pressure on the pps to drive lower for the buy backs, it seems unlikely this will advance all that much until well into February.
1 share traded so far this morning. MM manipulation....
Anyone heard when financials will be reported?
ST - My thinking is that the underlying reasons for a company's shares to go lower are seldom corrected by using a reverse split. If anything it just gives shorts more runway to drive the pps lower after the split. NM needs to fix its balance sheet.
Don't know if this is a good price to buy in here. Waiting to see if/when the 20 day crosses back above the 50 day.
J.P. Morgan "I am more concerned with the return of my money than the return on it"
If DRYS follows the annual cycle, the PPS is likely to drift lowere from here. That may be what GE is waiting for before resuming the buy back. Keep in mind he hasn't filed a new SC 13D/A in a month. He was filing every 2 weeks leading up to the holidays. As of 12/17 there were roughly 15 million shares in the trading float. The 2 buy backs have been a very interesting way for GE to increase his ownership in DRYS. Using company money - shareholder money in effect - to buy everyone out at what is arguably undervalued prices.
Wonder if he will do a 3rd buy back or start paying a dividend? I'm thinking buy back since the market is OK selling shares so cheap.
A whopping 59k shares traded so far today. ?
Haven't heard from GE for some time now on the buy back. The last filing was a month ago:
"As of December 17, 2018, the Issuer had 87,833,480 Common Shares outstanding. Based upon the foregoing, as of the date hereof, the Reporting Persons may be deemed to beneficially own the Common Shares set forth below:
~snip~
,515
Mr. Economou 82.5% 72,421,515
(1) Mr. Economou may be deemed to beneficially own SPII, and may thereby be deemed to beneficially own the 72,421,515 Common Shares owned by SPII.
Except as described above, no other Common Shares are beneficially owned by the persons named in Item 2 of this Amendment No. 14.
Except as described herein, there have been no other transactions by the Reporting Persons in the Common Shares during the past 60 days.
(d)
No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of, dividends from, or proceeds from the sale of, the Common Shares reported in this Amendment No. 14.
(e)
Not applicable.
VH - Can anyone trust any of the Greeks? NMM currently has Zacks rating of 1A, which is their strong buy recommendation: https://finance.yahoo.com/news/value-investors-buy-navios-maritime-141002103.html
Zacks doesn't currently have a DRYS rating and as far as I have found, there are no analysts willing to admit they are following DRYS. However, my thinking is that both DRYS and NMM will continue advancing as shipping rates improve through 2019. Given all of the probabilities for each, I believe NMM has the most likelihood of doubling share price by the end of this year. In fact, NMM could add another 20-30% running up to financial reporting early next month. And then there is the dividend that will get paid.
As I noted yesterday, I will continue to monitor DRYS for an entry point, but for now my money is in NMM.
GLTA
TaxiCaT - right now I think there is more money to be made in NMM versus DRYS. DRYS may trade back to $5.50 area again so GE can continue buying back shares. I noticed he hasn't filed a new SC13 D/A recently. So he still has some cash left to buy more. It seems he files only when he gets around a million shares to report.
So my fear with GE is that he will do another RS and drive the price down again so he can buyout the remainder of DRYS for even less than it would cost today. He has never shown himself to care about other shareholders and doesn't understand his fiduciary responsibilities. I don't think he changed his spots just because DRYS balance sheet looks better.
Just the same, I continue watching DRYS and plan to make opportunistic trades.
I sold this when it ran through $6.10 last week and moved into NMM. Saw a 25% run there in just 2 days. Looking for a reentry point here. Let's see if $6 holds.
My concern with DRYS is GE. What is his plan once the $50 million buy back is completed? Will he launch another buyback or pay dividends? He is self-serving at best, so what will be his next move?
NMM announces $50 million repurchase plan -
Navios Maritime Partners L.P. Announces $50.0 Million Unit Repurchase ProgramFont size: A | A | A
9:00 AM ET 1/7/19 | GlobeNewswire
Navios Maritime Partners L.P. Announces $50.0 Million Unit Repurchase Program
MONACO, Jan. 07, 2019 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. ("Navios Partners") (NYSE:NMM) announced today that its Board of Directors has authorized a unit repurchase program for up to $50.0 million of the Company's common units over a two-year period. Unit repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by Navios Partners' management based upon market conditions and other factors. Repurchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require any minimum repurchase or any specific number of units of common equity and may be suspended or reinstated at any time in the Company's discretion and without notice. The Board of Directors will review the program periodically. Repurchases will be subject to restrictions under the Company's credit facilities.
About Navios Maritime Partners L.P.
Navios Partners (NYSE:NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit our website at www.navios-mlp.com.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events including Navios Partners' expected cash flow generation, future contracted revenues, future distributions and its ability to have a dividend going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, our ability to take advantage of dislocation in the market and Navios Partners' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "may", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates", and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long- term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize, UltraHandymax and Container vessels in particular, fluctuations in charter rates for dry cargo carriers and container vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses, including but not limited to: crew, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Partners' filings with the Securities and Exchange Commission, including its Forms 20-F and Forms 6-K. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in Navios Partners' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Partners makes no prediction or statement about the performance of its common units.
Public & Investor Relations Contact:
Navios Maritime Partners L.P.
+1.212.906.8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1.212.661.7566
naviospartners@capitallink.com
> Dow Jones Newswires
January 07, 2019 09:00 ET (14:00 GMT)
Seems a bit odd that NMM's share price has been cut by 60+% in recent months. All apparently owing to the potential of loaning money to NM. That is an obvious risk to future dividends, but I don't think the current pps reflects value or risk.
74k shares traded so far today. Way off the normal volume. Looks like the shorts might start hurting soon.
NMM currently trading at less than 25% of book value and a annualized dividend of 7%. The biggest risk is debt due in 2020, which seems easily managed with the container sales and/or negotiating new loans.
This one seems like easy money from here. Any one have any other details?
I-Man - the pps is still 40% off book value. Is it any wonder why GE continue to buyback shares?
Current book value is roughly $8 and that number continues to get larger as DRYS buys back more shares. Wonder what the outstanding share count will be next report? 87 million or so? GE will own about 83% of DRYS at that point. More importantly though there will only be 15 million shares trading at that point. Waiting on the next short report. The last showed over 2 million shares were short. With the low number of shares trading lately, it could take 3 to 4 days to cover.
TaxiCaT - Not sure what GE's strategy is, but to be certain it will benefit him primarily. I certainly don't disagree though. As DRYS buys back more shares it is going to make it difficult for shorts to cover when there is a big run. Very doubtful the pps will run to over $100, but it will certainly run much higher than anyone expects.
DD75 - That's my recollection too. With only 16.5 million shares actually trading though, there is still some room for a nice run.
DRYS book value is roughly $8/share based on the current outstanding. That seems destined to become an even larger number as DRYS continues to buy back shares.
DRYS has bought back another 1.1 million shares. Total outstanding is now 88,972,252 while GE's share count remains 72,421,515. His ownership percentage of DRYS has grown to 81.4%. So ~16.5 million shares trading with 2.1 million sold short (NASDAQ 11/15).
What isn't clear is how much cash remains in the buy back. However it does seem possible the outstanding will be close to 85 million before it is completed. All the while, the book value continues to get larger per share right along with the EPS. Net income per share is getting close .50 per share on a annualized basis. DRYS is definitely a different company from what it was just a year ago.
Looks like 1 out of every 9 trading shares is sold short. As GE continues the buy back that ratio is going to get closer to 1:1. DRYS is just 1 catalyst away from seeing a similar run up that occurred a couple of years ago.
That is what I am thinking too. Once the shorts drive it down lower after the split, there is likely to be a nice run as they cover and others start buying.
Wonder how many shares DRYS has purchased this week. The pps range is where they seem to have been buying over the past month or so.
carusso - It seems to me the RS will have to happen in order to keep NM trading on the exchange. The vote is planned for 12/21 during the annual meeting. Not sure when it would start trading on a split adjusted basis because of the Christmas holiday. After the split though there will be fewer than 12.5 million shares outstanding. Could be some interesting trading going on afterwards though.
https://www.sec.gov/Archives/edgar/data/1333172/000119312518340149/d642520d6k.htm
MM's moved the pps down and if history is any barometer, DRYS has been buying back more shares.
With a similar dividend from Heidmar from last year ($9.7 million), DRYS could easily report over $40 million net revenue for this year. Revenues have improved and should continue to do so through next year.
KR - that looks about right. Although GE has been issuing reports much faster these days. Could turn out to be sooner.
It would be nice to see something confirming the VLGC's have been transferred to new owners and how the debt and cash work out. Also wondering what, if any, cash outlays will be needed for the low-sulfur fuel and BWTS upgrades might be needed. Any that are required will have ships in dry dock 4-6 weeks and cost millions for the upgrades. That's a good news/ bad news situation for next year. On the one hand, any ships in dry dock won't be earning anything. Of course, that will affect a majority of the world's fleet. On the other hand, a lot of scrapping will likely take place next year because of the expense in getting the upgrades done. Shrinking the fleet will be a great thing for rate. DRYS pps should move significantly higher, as well.
The MM's seem pretty intent on moving the pps down. Wonder how much of it is to get GE more shares for the DRYS buy back?
If history is any teacher, stocks trade lower after a RS. 1:10 coming soon. Think I'll wait and see what the pps does.