Here's what I ask about that loan?? As it seems all profits from rigs are flowing to Cardiff, as stk holders sure ain't seeing any profits!! Cardiff is GE's private Co that gets up to like 30% commisions, when ordering rigs.. I think they got about $600M off the 4, delivered in 2011.. Should be about same amount on these 4!! And they also get about 5% off revenues for leasing them.. This yr, that will be about 5% of $1.2B and next yr about 5% of $2B. This loan!!! $1.6B of it, paying off past debt!! Reality: Most of that $1.6B may have went to Cardiff?? And that other $200M may go directly to Cardiff??? On last ER!! Why did they list debt as $2.8B and list other liabilities as $555M??? Does that other liabilities represent what Orig already owed Cardiff for commissions???? In 2011, I thought when they got that 6th rig into operation in Dec 2011.. Of the $1.2B they would be generating, would be at least 40% profits... Seems ole Geo, had other ideas, as where those profits were going!!! Just by telling the rig builders to build 4 more rigs, like last ones!!! Did Cardiff, get $600M??? And what a deal Cardiff gets on leasing them... Get a lease wrote for 3 yrs!! Sit back and collect 5% of about $600M over next 3 yrs!!!! And next yr, that could be times 9!!! All I know, those rigs are generating the revenues expected?? You figure out why they ain't earning anything??? And Don't forget, it won't but a few yrs ago... Drys looked as attractive as Orig does now.. GE made himself billions.. What do stk holders have??? Seems ole Geo is way ahead of stk holders??? And about now, he is rich enough to tell everybody to kiss his!!! Ask Drys stk holders, how they are doing!!!!! Now he did make a nephew of his rich, when he took borrowed money of Drys and bought Ocnf, for at least 10X what it was worth!!! If it was really worth anything??? Funny how his nephew a few mths earlier, had obtained $20M and had obtained 51% of it!!! And I think his nephew, is V.P. at Orig now??
Its not a secondary. If DRYS sells more shares its no different than if you sold me your shares. No new shares are being created. If or when DRYS sells the price does seem to drop because they offer such large quantities. I do wish DRYS would get well. What a ditch they fell in
Here is something odd!!! So far, Geo hasn't sold any additional shrs of Orig into the mkt.. Shr count has stayed at 131.9M shrs... In about 7 or 8 yrs.. Drys shr count went from like 33M shrs to 382M?? While no one was really paying that much attention!! But always pay attention to shr count... This morning it popped into my mind, that 9.5M shrs of Orig stk, he pledged, against Drys debt could have been additional shrs?? Reality, those shrs should have been shrs that Drys own.. And shouldn't have anything to do with Orig's outstanding shrs!! When you question, where all that money went to, from the sale of all that Drys stk!! Now that is a mystry!! At the time those bulkers were generating huge revenues and profits!! And he was obtaining loans for newbuilds??? So the question is.. Did any of the about $2B from the sale of stk, ever flow to Drys??? Keep this in mind...I believe I read somewhere that Orig, is authorized to issue up to 1B shrs?? Don't think they will, as long as GE can come up with money to take delivery of these newbuild rigs...And he may have those bases covered already???
So do I cause I own 10,000 drys and thinking of buying into ORIG now. Support at 17.57...if it closes below that it could drop down to 17.33 however all indications point to a strong company with a good future so if your long you should feel good regardless of PPS fluctuations. GE is the only bad thing about this company but if he brings DRYS back from the dead I will change my opinion about him but so far I'm not impressed and sure he could give a rats #$%$ about retail investors anyway. GL