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Diana Shipping Inc. Message Board

  • jamessmarson5 jamessmarson5 Dec 1, 2011 5:10 PM Flag

    3 Diana Red Flags

    1) There vessel operating expenses are 40% higher their voyage expenses are much higher than the average shipper.

    2) Have Cash of $390 M and Debt of $370. It makes no sense to have a positive net debt for so long. Why not reduce Debt to $0, Operate no debt and borrow when needed if a purchase becomes available. Even though interest rates are currently low. Their revolvers are $300 million on top of what they have now. So they can withdraw $600 M from the revolver and not pay the $7-8 M they do a year for interest expense they are doing now.

    These 2 changes increases Net income by about $40 million this year.

    3) On the Share Buy Back from the Conference Call

    "So we are not there to do something that is going to put this in danger and decrease the liquidity of the company. So you have to understand that the share buyback program is there and is going to be used very carefully and not to disturb the liquidity of the stock."

    Afraid to buyback to hurt share liquidity? Who the fark cares about share liquidity. That is the biggest red flag. Let alone the $100 M could repurchase based on a $7 price, 14 million shares which is around what they had a couple of years ago being 66 million shares. So it seems kind of sill

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    • lol I am the only one here posting parts from their 20-f all you guys are so stupid.

      go yourself you morons

    • You're probably wasting your keystrokes here, Audio.

      Our friend seems unwilling to believe what the company has published in its SEC filings.

      And he seems to believe that the company should, somehow, be insulated from the non-wage inflation that is affecting the rest of the planet.

      But, who knows... maybe he'll contact Diana's IR department, get answers to his questions about their maintenance expenses, and report back on what they tell him.

    • "Also comparatively to other similar fleets which are older theres are higher."

      It is comments like this. You wouldn't know the first thing about ship maintenance costs or surveys yet you suggest you do. Junior, you are out of your depth.

    • You are finished. Go away. You've proven you don't know anything and nobody will bother with you as you are a punk and have nothing to add.

    • Boy, you're stupid.

      First of all they say it should be 3% and its been more. Second then they should explain what is causing the increase. They are not being transparent on the specific costs. Diana has a very young fleet and repairs should not be a big issue at this point. Also comparatively to other similar fleets which are older theres are higher.

      Read post 1 you i.d.i.ot

    • Obviously you didn't read the 20-F. Crew costs are down. Stores, spares, and repairs are up.

      Think about your car. Quite apart from the major maintenance effort at 30k, 60k, and 90k, does it require additional maintenance as it ages? Brakes? Exhaust? Tires? Wiper blades? Detailing?

      Do these costs increase as the car ages?

      Why do you think a ship would be any different? As a ship ages, it requires more maintenance - just like your car. Repair efforts are ongoing; they don't occur JUST at scheduled dry dockings.

    • lol are you serious pedophile. I doubt you have the capacities to read I am sure you spend all day watching child porn with a name like that.

      ya fuel costs are much lower today than 2008 but their expenses are higher. You think they could tell the people that we won't raise wages. And DSX isn't drydocking ships unlike some companies so expenses shouldn't rise for that reason.

      Explain to me why costs are going up. In their 20-f they say 3% a year. Since 2008 I would have expected it to be flat to down with declining expenses but I would dream for 3% considering where they are now.

    • "What is more alarming is that with shipping rates crashing u would think expense growth would slow or decline but no it keeps going up."

      This is the stupidest comment I have ever read.

    • I don't believe you can read well enough to go through the 20-f and you certainly don't know enough about the industry to even comment.

    • So what facts were inaccurate.

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