A very negative posting about DRYS by a poster named Salavort--as well as a brief reply to him:
You have taken absolutely bad numbers and presented them in a positive way-same as another article on DRYS. You cannot assume that revenues will be $400 mln per year. At this point, they could very well return to last year's $70 mln/quarter. And the shipping EBITDA even for Q1 2014 was only $30 mln (based on the information you presented). This means that DRYS (ex-ORIG) has a debt to EBITDA of more than 7.5x. So pretty much you just proved that DRYS is overlevered.
Another really disturbing point is the fixation to the book value of assets. As I have written in numerous comments to articles about shipping-from people that no nothing about shipping-book values are overstaed as the vessels were purchased at record prices. Look at Genco's bankruptcy for example. If that were true, the copmpany would liquidate, pay the debtholders and the shareholders would make many mutliples of their investment. So in reality the market assigns a lower value to the DRYS shipping assets-well below the book value of equity-and the rest comes from ORIG.
A third point is your comment on falling iron ore prices. Yes, they do stimulate demand from china. Yes, the fact that Australian iron ore has a higher ore content makes it even cheaper compared to domestic ore. But you fail to mention that iron ore stockpiles in China are already at record. That was among the drivers of higher rates in the past months, and its probably over.
PS-1 Any article of DRYS is misleading if it skips mentioning Economou. He is a thief that will steal from shareholders when he has the chance. I own ORIG because I think its so undervalued it's worth the risk-and because I think that, in the short to medium term, there is not much Economou can do to fleece shareholders.
PS-2 Please take momentum or deep value from your investment style. They are literally the two ends of the spectrum. No one can be both.
30 May, 11:09 AMReply! Report AbuseLike2
fidelissemper Comments (170)
Salavort all I have to say is ok sure LOL now go back to the yahoo board where you belong and live to annoy with your antics
30 May, 11:28 AMReply! Report AbuseLike1
salvatort Comments (179)
