I believe this company needs to stop paying out Such a high divided for a year or two,, I'm ok with that, I can wait now for a bigger payment tomorrow , but it seems this company is eating itself alive to pay off shareholders, or am I wrong I think a small break in dividend payments to restructure seems like a wise idea. even as a shareholder theres no reason to milk this cow to death , I'm not saying I'm just saying Ps. I know someones going to give me heat for this . So bring It. lol
Their current ratio is one of the better ones out there in the shipping industry, which suggests they have good ability to obtain financing. They've suspended their dividend before. They could do so now and save even more cash. So, I am not sure what the plan is - one possibility is that they just wind down and totally get out of the business and liquidate the assets at some point, as a depleting trust would do. Nothing they have said suggests they will do this, but it is possible. I am not sure what they are waiting for - they have access to the capital and could likely access more via a secondary or additional bank borrowings - and they have a lot of room under a current facility. They may be waiting until the bitter end or maybe they just have zero idea what is going on. It is definietely sketchy and it doesn't look good, but if anyone is positioned to survive, raise more capital via a secondary or borrowing, they have the pieces. I am just not sure what is going on - the stock trades as if it is broken. But, often that is where the best long-terms gems are found. I will be honest - I am scared.
Stopping the dividend will not give Knightsbridge the capital it needs to restructure,i.e. replace its aging fleet of vlcc's. The company needs a big new loan or cash infusion from a secondary in order to finance what it needs to do to have any hope in the future. I am sure that there are huge bargains to be had purchasing newbuilds or newer ships right now if Knightsbridge had the capital. The fact that they have done nothing for the last year is a big negative as it strongly suggests that they donot have access to the necessary capital. Not having JF on board any more really hurts them. Not sure they can wait this out,by the time its over they may have absolutely nothing left. Looking grim for Knightsbridge.