There are more ways to have strong balance sheet. If this is the only way they can have strong balance sheet that worries me even more as they can come out again and cut another 70% dividend which is what many investors are thinking right now and selling.
Anyways, as I said I'm long for now and I'm hoping management wakes up and they turn around soon.
I have owned 10k shares from a little over $5 and do not have a problem holding for the long term. Actually, if the market does correct, like some say, then I expect to buy a bunch more during that correction. IMHO the company is well managed, probably better than most. What needs to happen is a robust economy around the world then hold on to your hat. That will come in time, now is a good time to accumulate additional shares.
Sentiment: Strong Buy
by reducing dividend their balance sheet becomes stronger. They can redirect those funds into revenue generating assets. This use of their financial capacity enhances long-term shareholder value
I'm already close to losing 40% now. Not sure why you think its a stronger company after they reduced dividend? I don't have a problem with this going down when whole market is going down. There needs to be some sort of guidance from Management before this will start to turn the corner but the issue is how long to wait as looks like management is sleeping?
Whats your entry point? don't make an emotional decision. DCIX is same company it was 6 months ago when it was trading for double- actually a stronger company that they reduced their divvy.
Good luck. I'm long as well but seriously considering taking a loss. Free fall continues and we are hitting new low almost everyday while S&P is touching new highs. Management is not at all worried. No current dividend reassurance, future earnings expectations from them. It it continues like this we might see lose of another 50% within a month or so,
May be management is still busy selling this as to them this is still a good price to sell.
Hopefully this is it. I'm in at $2.52- Keep hearing about this 'recovery' in the marine shipping industry, but can't find any conclusive out there. if anyone has any articles or resources on this please let me know.
Long at 2.61 and accept that it's very unlikely one hits the exact bottom. The yield and as you say, strong financials, will help cushion the bottom where and when it happens. We are 'paid to wait'.
Sounds like DSX in 2008 and I'm still looking for the dividend to return. However, I think we may see DSX return the dividend in 2015 or 2016. As they return to making a profit.
DCIX "After carefully considering the current containership charter market and vessel acquisition opportunities, management believes the board's decision to reduce the cash dividend payable with respect to the first quarter is in the best interests of the Company and its shareholders and is consistent with the long-term strategy of maintaining a strong balance sheet and pursuing attractive vessel purchase opportunities as they arise," the company said in a statement.
Idiotic management, please wake up. Before the company goes bankrupt and stock goes to 0, give current dividend and future earnings reassurance for next few quarters.
...I have a very small position in this stock, so if it totally tanks, I'm only out the equivalent of a nice washer and dryer set...but the g/f loves to watch ships on one of the marine traffic sites, and it sure does appear like they keep their fleet pretty busy...I watch the Puelo mostly (one of their bigger, newer post-panamax ships), and it has been staying pretty durn busy going back and forth on its routes, so it seems to me...fwiw...GLTA
One of only a handfull of shippers that exceeded earnings and revenues and management cuts divvy just as containership rates are coming back so everyone sold on the cut. Company has a strong balance sheet and 30M in cash with 160M in shareholder equity so at break even shares should be 4.58..market cap right now is about equal to the cost of the 2 ships they bought at the end of last year so there is plenty of meat on the bone, but management needs to keep investors better informed of what is coming up..btw, the 14M they will save this year not paying old divvy equals 40 cents per share in increased pps. It's a good time to get in, but just remember it's going to bounce between 2.70 and 3.00 from now until earnings announcement and then take off but you still get the nickel per share while you wait for it to recover
Sentiment: Strong Buy
I owned this a few months ago at $3.92. Since then the company has met their earnings expectation and dropped significantly due to dividend cut. A friend of mine works for a global transportation and logistics company and tells me that there is significant oversupply of containerships. Is this baked into the current price. Guess the question really is: how much lower can it go?