This is good news for DRYS. The spinoff would have taken the Revenue and Earning Power of these 4 chartered VLGC’s (for the next 9 ½ years) away from DRYS. This catalyst to a higher share price remains in place inside the parent company DRYS. GE is getting rid of the old Panamex’s for cash while continuing to Repurchase Shares at a large discount to value. That being said, nothing is being paid for these future cash flows and earnings for this business. If bought at these prices, it’s free. DRYS has the cleanest balance sheet of all shippers with a large discount to value as attested by the recent run up on the share price. He could conceivably take this company Private at these the still low market prices. You don’t have to be an “expert” on maritime shipping industry to figure this out. Common sense, tells you the catalyst for value and share price moving higher is in place with Share Repurchases, hence, the thesis for even higher share prices is intact.
Good Investing,
Valuhunter
