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  • deepharbor deepharbor May 19, 2008 9:06 PM Flag

    DRYS will bid for EXM

    it is well known they were in the bidding when EXM bought QMAR I think it's likely that DRYS will bid now for EXM, the other likely roll up candidate is EGLE, until you see the baltic index decline by 20-30% eps will continue up, the index is still up 64% yr/yr and every dollar increase falls to the bottom line.

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    • I thought about that today. Revenue was $232 mil and they earned 153 mil! Holy cow man! What are they going to do with all this cash?

      If shippers don't start buying each other, companies like BHP, RIO and MT are going to buy them. Wouldn't you buy a shipper if you were using them all the time and they threw off that much cash? Even if they paid a 100% premium, they would still be getting a deal!

      DRYS has a market cap of 4.3B and it will generate at least 600-700 million in cash this year, maybe more. At the current stock price, your investment is returned in 5-6 years!

      No way will these companies stay at these levels. Warren Buffet could come in and snatch up the entire industry if he wanted to and he will if he smells money. He already owns the rails, he would buy the shippers in a heart beat. He loves cash flow!

      EXM and DRYS are cash generating machines. If the BDI goes any higher, I can assure you there will be buyouts in the sector. I bet you that shares are already under accumulation by interested parties. One day you will hear that the someone bought a ton of shares and wants to buy out the rest of the company.

      In this market you buy value, companies that are generating tons of cash! Both EXM and DRYS will make fresh highs in short order.

    • Yeah, at what price!? At 92 bucks share EXM trades at 12 times earnings! ha

      • 1 Reply to investorsltd
      • That is just EXM, how about the QMAR earnings? The combined company is generating a sh!t load of cash. I was listening to the CC, the CEO said they can pay down debt, pay dividends and look to aquire other shippers, no problem.

        Anyone with half a brain got the nessage. Hey Wall Street.....WE ARE GENERATING OVER 50% NET PROFITS ON OUR SALES!

        There is no industry in this market that generates that kind of cash relative to sales. These are last quarters numbers, they are even higher now!