You guts are all complaining about some article on SA, and you don't know enough about the fundamentals of the business to know if it's true.
And the conspiracy nuts talking about hedge funds. That's classic!!
Do 15 minutes of research. And you'll see that in order to maintain this dividend.
DCIX will have to dilute shareholders by 10 million shares, by this summer.
You'll see a lot of references in response to Seeking Alpha article. This is a crock of ****, ANYONE can write for Seeking Alpha, it is about as credible as this message board. The guys submitting articles are total nobodys. The average reader who takes them seriously is a newbie with 100 shares of 3 or 4 different stocks, if that.. Its like comapring a Motley Fool article to one in the Wall Street Journal and wondering which is more credible/well researched.
Agreed. Having said that, this guy's previous article and this one have decimated SP. The first article was a bald attack. The current one is more cogent, and one has to wonder if there's some merit in his argument.
Stock is down because they just renewed a lease for Sagitta at $7250 per day when they had been getting $22,000 per day. Their operating expenses are more than $7250 a day, so they are losing money every day on this ship. Other ships are due to come off of lease soon too, so future income is really dire. Good news is that they don't have a lot of debt, but neither do they have much cash beyond one more dividend. I had been holding on, but may be time to sell.
That kid is one year out of his bachelor's in Economics (per his SA profile). That doesn't mean he's wrong but he doesn't have the weight/respect to pull this stock down that precipitously. Not even Barron's nor WSJ have enough influence to cause a quadrupling of volume. More than likely, what the kid said is common knowledge among analysts that follow shipping and these analysts are bailing.
I've lightened up on shipping and am only holding NMM now.