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DryShips, Inc. Message Board

  • mister.harrison mister.harrison Feb 21, 2013 5:56 PM Flag

    Urban Legend About George - Circa Nov. 2012

    He walked into a European bank. The bank president, who had been drinking heavily on this slow day, warmly greeted George and wisked him to the back room.

    George: I have 4 VLOCs, 1 or 2 of them have contracts, and I need $200 million to build them.

    Bank president: You are on Cramer’s Wall of Shame and your companies owe billions. NO.

    George: I need $125 million to build 4 Ice Panas.

    Bank president: No way George. You are on thin ice.

    George: $80 million to build 2 Capes?

    Bank president: Look at Dryships balance sheet. You need to cancel your obligations, lower your debt, cherish the crown jewel- Ocean Rig, and IPO your tankers. If you need help with that, then I can help.

    George stormed out of the office, went to the Starbucks, and picked up the newspaper. He went to the business section and saw that DRYS was 1.70. He cursed, bowed his head, and threw his drink away.

    From that day forward, George swore that he would day anything and everything in his power to cancel the dryship newbuildings, pay down debt, not sell ORIG shares, and IPO the tankers. He paid $21 million to get the last 2 tankers off the books. He got the shipyards to sell the 4 VLOCs, 4 Ice Panas, and 2 Capes at discounted prices to other parties. Even though it hurt him, he lowered the stake in ORIG to 78 million shares because Dryships needed the $120 million to pay off current debt. Finally, he took a trip to the London stock exchange to begin the process to IPO the tankers.

    George made lots of mistakes in the last 3 years like ordering the 12 tankers, bailing out Ocean Freight, and ordering 2 Capes and 4 Ice Panas. But he is a changed man. If forfeiting the $100 million Dryships deposited on newbuildings and the $70 million that Ocean Freight deposited on the 4 VLOCs is what is needed, it must get done, it will get done, and the turnaround story will continue as the Economou surname earns backs its due and glory.

    Sentiment: Strong Buy

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    • Any update on the Urban Legend ????????

    • Bumppppp

    • Should get an update on GE the urban legend in a month or so.....

    • Hey GE since you read this stuff on weekends , just a shout out to the great job you have done bringing shareholder value with all those great moves of yours.

    • Well, I guess you weren't that far off with GE seeing his shares at 1.70pps. I feel like trowing my coffee at GE.....

    • Just went back and looked at the debt for DRYS and you are more than correct that the banks are done with GE...
      1) Current debt 1,708.3 million
      2) Total for Dry-bulk vessels under construction 633.7 million
      3) Current Tanker Vessels 248.0 million
      4) Tanker vessels under construction 525.4 million
      5) Group Total 3114.9 million
      Yep, with 3 billion already borrowed or needed to be borrowed No doubt the banks are done with GE and hoping for the best. If GE sold all that is left of ORIG he would still owe the banks 1.8 billion for what he has or wants......

    • GE was once the go to guy all the media wanted to talk to about the sector, he was known for being a visionary now nobody calls except the attorneys to discuss the lawsuit against him and his managenment team and how they can get out of this capital and covenent mess. Many have stated here that GE doesnt care but I believe one thing he has and that is a desire to be respected by the media and his peers. Going from the man to the theif and a blatant stiupid one must just drive GE to drink. GE cooked his own goose with his selfish flabouant ways. GE figured the world would rejoce when he listed ORIG and he got a big Pie in the face. GE knows now that his tankers will get the same fate if not worse. So, whats the ego centric erogint theif to do now. Seems Nicholas at Capital Link has his work cut out for him rebuilding the GE name. The next CC will show if GE can really keep this ruse on and act like nothing is wrong. As a long I hope GE wakes up and has the strength to pull off a big comeback but the odds are surely against him....

      • 4 Replies to mwb3210
      • Mw, In reality.. There was never an IPO of Orig!! Oh they carried it public!!! But Drys still owned it!! When they took it public on the Nasdax.. The only shrs outstanding were the 22% of Orig that Geo had sold, for $500m ,so he would have money to start taking delivery of those rigs that started arriving in 2011.. Then he give his nephew (Ocnf) like 2% while no one was really paying attention!! But to trade on the Nasdax, you have to have a certain amount of stk holders!!! Thats when they come up with the billiant idea.. Issue 2 percent to Drys stk holders and call it a dividend... Thats one of the biggest bunch of BS I ever saw!!! How do you issue stk to someone who for all practical purposes owned it to begin with.. But Orig sure ended up with enough stk holders to trade on the Nasdax. I'm sure the IRS appreciated it.. It did have tax implications!!! But it accomplished what GE had promised the ones who bought the 22%... He got it trading on the Nasdax in 2011... At the time... I was convinced it was worth north of $35. And the ones who bought the 22% would at least double thier investment in less that a yr... Rest is hostory!!!

      • Mw, When I studied the results for Orig.. Trying to figure out why they weren't coming in with results expected... They report operating cost for those rigs ... Then they report other expenses??? Check out how much those expenses have been skyrocketing?? And try to figure out why and where all that money goes??? Now those are expenses listed are other than cost of operating those rigs, interest and etc??? If there is money there.. Is Cardiff just taking it and charging it to Orig as an expense??? In looking at Orig yesterday!! Looks like Geo just got anouther like $1.25B loan to pay for what is owed on those next 3 rigs... Reality: If they have been extorting the truth as in the past.. They may have to come up with anouther $1B or so before they can take delivery of all 3 of those rigs.. Actually the smart move to make right now!! While I imagine they could get maybe $800M to $900M for one of those rigs, would be to sell one of them!!! Not saying it will.. But if oil were to drop below $70. and stay there for a while.. Would people invest what they are now to drill in deep water?? If one of those Opec members, started selling more than thier allotment, into the market.. Would Saudi Arabia retaliate and flood the mkt... Not that any of us really know how much oil Saudi is sitting on... What if they have enough oil to fill the Atlantic Ocean??? And all you need to do is stick a straw in the ground to get to it!!! But in messing with one of those solar panel Co's last yr... Saudi said something about they were going to invest like $100B in solar energy over the next decade!! Bottom line: They were using oil, which they were recouping like $6. a brl for in power plants.. And they could be selling all that oil for like $100. a brl?? I guess power bills in Saudi are pretty cheap!!

      • seriously are you trolling? it seems like the best one of the month

      • I believe that bankers made George finally realize that Dryships was overleveraged. So far so good cancelling the newbuildings, paying down debt, getting financing for Ocean Rig, and planning a tanker IPO.

        Sentiment: Strong Buy

    • I have no beef with the guy and have never said a bad word about him. I like him. He's made me plenty of $$$ already.

 
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