Do you now understand how NAT killed themselves with 100% equity/no debt
If you use equity offerings to purchased overvalued assets that are now under utilized because of a multi-year recession in concert with a Chinese ship overbuilding cycle that constituted the biggest bubble in ship building ever..... you are done.
Evidently you are not aware that NAT was over $35 and has now sunk to single digits precisely because they have an equity-laden balance sheet with offsetting assets purchased of materially dubious value.
Evidently, you are not aware that NAT had a very high dividend, had to cut, then eliminate, then partially restate.
I suggest you take the time to understand the NAT story in detail before you endeveor to simply state that paying a dividend means all is well. All is not well at NAT. Not at all. You still have overcapacity of epic proportions and day rates have done nothing and the cost of fuel and labor keep going higher.
I am not an idiot short seller. I sold at $35 after management went on CNBC promising they would do no equity raises for remainder of year only to do an equity raise within a week of the CNBC interview. Management got $33/share that was used to purchase vessels that are now worth less than 1/3 of the purchase price because of the overbuild and under capacity utilization and that is what shareholders got for their money. The smart ones got out once they figured out that NAT mgmt could not be trusted to say and do the right thing by shareholders back then or now.
One big problem with these message boards is that #$%$ are tolerated. You should never respond to someone who suggests you are an idiot! Name calling reflects incompetence to make a rational argument.
As far as NAT goes, or any other stock, you have to keep evaluating its ability to survive tough times. That is a personal judgment based on individual knowledge and experience, and it is a good thing to have differences of opinion. Otherwise, we would seldom see the worst or best case scenario.
took a little deeper look - yes they are over paying for assets. And shorts are increasing. however purchasing good assets at very low cost with stock sales is the way to go.( to bad that s not what they did) If times get bad as they are now usually fail to pay interest payments forces BK . 250M is not much compared to assets. too bad in this time period these assets have VERY little value. I do not think they KILLED them selves with 100% equity. it was purchasing at toooo high a price.!!!!
Another Cramer stock in the F**** toilet.