In 2011, Drys still had some very lucritive contracts on their bulkers...And owned all of Orig.. Geo still sold 100M additional shrs of Drys into the mk..And sold 22% of Orig.. And added a bunch of debt to Drys and Orig.. One thing in particular happened as Drys stk droped from $6. to $2... A few mths before Geo announced Drys was going to buy Ocnf.. His nephew who was the CEO of Ocnf, come up with $20M to invest in Ocnf.. Ultimatly he ended up owning 51%.. Giving him the power to make all decisions of Ocnf as Geo has over Drys.. Even thou Ocnf stk had dropped to about $5. And most likely was looking at BK.. As it had become well known there was a glut of drybulkers and would get a lot worse... Well: Drys(Geo) announced they were going to buy Ocnf for the equivalent of $19.75 per shr!!!!! Best I could figure... Off that $20M the nephew invested.. He got back $50M.. And according to Audio is now a VP at Orig?? But unless he has sold it.. He should own about 1% of Orig, as Ocnf stk holders were given 2% of Orig... In that deal, the best I could figure out., Drys ended up getting 6 bulkers with $131M debt on them... And 5 newbuilds.. That some money had been paid when ordering.. But ultimatly Drys was stuck with paying to get them built!!! I also believe they just flat out lied about contracts on those newbuilds... At the time, they stated they had decent contracts on 4 of those 5 newbuilds...Now they show they have contracts on 3?? And whether it is all BS is questionable?? Geo's private Co. Cardiff handles all the leasing???? At the time.. I didn't think this was a big deal??? I actually thought those drilling rigs was going to make so much money.. All the rest of this was fun and games... But as the Original Audio tried to tell me.. Drys stk holders would never see any money from Orig.. Just as they never saw any of that money when Drys should hve been reporting big profits... Go back and see what they said they had all those bulkers leased for in 2008 thru 2011!!! They should have been reporting huge profits... In the mean time.. If any of it was real?? All those profits went some where?? Along with the monies raised from selling 350M to 400M shrs of Drys stk.. And now they are selling Orig stk And Drys and Orig are sitting here with like $4.5B of debt and needing maybe over $2B to pay for the newbuild bulkers, tankers and rigs??? BTW: Its my understanding Geo is now a multibillionare and owns one of the worlds biggest art collections!!!! He started in 2006 with like 6, 21yr old bulkers(scrap)... The boy has done himself proud... Stk holders are down over $2B!! And he has lenders on the hook for $4.5B!!!!
Yeah, that was awesome. I made some money on ORIG and it was my second worse stock in terms of likely bankruptcy. GE really came through that time. I was holding for a buyout due to the newbuildings and would have preferred it to be company I did not have stock in but beggers can't be choosers.
Thad, are you aware to reduce capex:: They just paid someone $22M to take over the building and ownership of 2 of the newbuild tankers?? Thats to say they lost that $22M plus what they had already paid toward building them.. Good chance Cardiff (Geo) might have bought them?? To tell you how bad they have got Drys.. They done that, even thou they just sold like $125M of Orig stk to meet debt obligations.. And as they may owe anouther $1B on all those newbuilds Geo ordered.. And Drys already has from $1B to $2B Debt... Where do you think Drys is headed?? Now that about all those bulkers are on spot... They may not even be keeping part of them leased?? And the ones getting leased could be losing money??? Cardiff not only handles all of Drys and Orig's leasing, buying and selling... They handle their own ships and other shippers as well?? One other fact I will point out.. From the time those last 4 rigs delivered in 2011 were ordered.. They kept saying their cost was about $600m apiece?? Then after they all got delivered... They said the real cost was a little over $750M apiece!!! Makes me wonder did Cardiff(Geo) Make like $600M in commissions?? What they signed up to pay the builders shouldn't have changed very much??? Here is some questions.. That we will never know the answer to!! Did Geo go into the tankers for himself and then dumped them on Drys, realizing what a bad deal they were??? Just the last thing in question!! Those last 4 bulkers he ordered in Dec 2011.. The rates in Dec were looking like they were making a comeback.. By Feb they had dropped to historic lows... From Dec till Feb, we hadn't heard a word about those bulkers.. In Feb, after rates had crashed!! Drys stk holders were made aware those bulkers were ordered for Drys???