Replies to post #115 on Danaos Corp (DAC)

[grantastic]

btw I first bought DAC in 2008 and I've made a few profitable swing trades over the years. So I have history.

I was ready to buy again ~2 years ago when it hit $3.50 - $2.50 but another poster warned me how their ships market values were WELL below their book values. He was shorting the stock (I never have) and that's when I realized the end-game for DAC is not a happy story.

The massive P/E was a mirage which drew in a lot of naive investors (myself included), by luck I always got out when it "felt" like the stock had peaked. I never thought DAC would fall below $3. (That's lower than the price which Costas invested liquidity in 2010)

But if even the founder & 80% shareholder overpaid for his recent shares by 3x, that's pretty scary to me. He badly mispredicted the coming shipping rates by dumping DAC's spare cash into even more self-serving shipping expansion (Gemini Ventures)

[oil export]

I understand that the current transportation price is lower than the previous price. I understand that the profit is expected to decline. I think that if BDI rises, the rest of the indices will rise. In the meantime, the company is reducing the debt and the stock price already embodies the possibility of profit alongside the risk. I invest a bit according to the risk ... and follow.