Seanergy Maritime Holdings Corp. (SHIP)

[investorwisdom]

don't take everything you see or hear for face value, he has millions in stock, and 100k may be a ploy to raise investor sentiment so he can dump the whole thing. And how much did he pocket on the IPO or the merger deal? Ask yourself those questions, because the guy was just paid more then he can can ever hope to do running SHIP to debt free position. He sounded awfully nervous in the webcast... something just is not right here, I can't exactly put my finger on it, but they do owe 400 million, which is almost half a billion last time i checked, 20 year old ships with profit sharing, which means any profit will not go to pay down debt or be paid as dividend to shareholders. So the way I see it 90 million in cash and a 100k investment from the CEO cant put a dent in that kind of debt. Sure they can keep their head above the water with the current contracts in the black so bankruptcy is not on the table for now, but as boats get older the $ amount that the boats rent for also gets lower at a increasingly exponential rate, and also with the heavy debt load, they have debt covenants, that require the company to stay in a position where they have a asset to loan ratio in the banks favor. As the clock ticks the boats are loosing value at such a fast rate that they are going to break those debt covenants, its not a matter of how, but how soon the Banks call in the loans and charge higher interest rates, this problem is very common in the shipping industry, the same exact story plays out over and over again through history. Do a little DD on other shipping companies, and you see the same thing happen, over and over again. What is going to happen in the long run is they declare bankruptcy, and the company will be repackaged or sold off and the name changed, just like a penny stock. The factors going forward are mostly negative, due to three factors, the age of ships, and the amount of debt, and the current rate paid to rent those ships, the problem is these are the three factors that the company has no control over through doing a great management job, all you can do is cross your fingers and hope that the current rate environment goes on the biggest winning streak in history!