Seanergy Maritime Holdings Corp. (SHIP)

[thedivot]

From the widemoatinvesting blog on Jan 30:

"To speak abstractly–if they can cover their interest payments, and their assets are worth more than their debt, then yes, the equity has to be worth something.

The recent stock sale though has to be one of the most colossally ridiculous capital allocations I have ever seen.

To say it most simplistically–they were a company that owned 11 ships, and they went and sold 40% of their company to buy ONE more. Did it have golden-plated toilets?

If management were willing to do it once, then it is too likely that they could do it again.

So in the end, I don’t think a person could ever reasonably postulate a company’s intrinsic value if they are capable of doing something like this. Maybe someone can handicap that risk, but not me, at least not with the current debt load."