I wouldn't exactly call it a scam!!! GE got him 6, 21yr bulkers (basically scrap) back in like 2004!! China got into such a big expansion mode... In 2007, they were leasing anything that could haul iron ore, coal and etc. for over $100K per day.. Too much info to go into!! But they ordered a lot of bulkers.. And with the contracts they had signed when ordering all those bulkers.. Drys could have probably paid for all those bulkers, if they had of just stayed in bulking???? But I believe GE has made billions thru his private Co. Cardiff.. They handle all the leasing of bulkers, tankers and rigs!!! They may make 30% of monies involved, when ordering or selling those ships and rigs!! Plus I think they take 5% of all revenues for leasing those bulkers, tankers and rigs...Makes no diffrence.. Drys and Orig are reporting loses!!! GE is still pulling (whatever it is) his salary and whatever stk he issues to himself!!! I think His big bucks come thru Cardif!!! Bottom line: I think Geo has a couple of Bil. salted down.. During all this time: He was able to sell about 400M shrs of Drys stk from $130. to $2. per shr..Maybe averaged $4.50 per shr?? I really don't know what outstanding debt is... Someone stated it as like $1.7B...Drys has serious problems!!! With what bulkers and tankes are leasing for!! They can't meet operating cost.. Let alone service that debt!!! To stay afloat and pay GE and Cardiff, they will continue selling off Orig.. IMHO: They will sell off all Of Orig!!! And then declare BK!!!! BTW: I think Geo was set up.. No matter what happens!! He wins either way!! If Drys and Orig made big profits!! Stk flys!!! If it goes BK, he is still in controll.. Sells Cardiff, all the assets for Maybe .30 on the dollar??? I'm sure he would love to borrow enough money... To do what he done with those 2 tanker newbuilds?? Pay Cardiff or whoever $22M to take assets that Drys has already paid a lot of the building cost on??? Hell of a deal for whoever bought them!!! But as they won't divulge who bought them, or how much money they had already paid against the building cost?????? About now!! Who would lend GE anouther dime?? As Drys and Orig debt may be more than $5B?? Lets see what they report on next ER!!! But as they may need anouther $1B for newbuild bulkers and tankers??? I don't think they can borrow anouther penny for them??? Very devastating if they have to cancel.. All that money already invested goes down the drain, plus cancellation charges!!! As for Orig.. I think the reason they ain't making money!!! Everything flows thru Cardiff?????
BTW: I really loved this stk in early 2011!!! 4 Rigs being delivered.. Generating like $200M apiece in revenues per yr!!! 6 rigs, $1.2B per yr.. As those rigs got delivered.. The revenues were there.. But no profits?? I thought about it hard!!! OK, start up cost to fit up a new rig would be pretty great!!! That explained no profits in 2011??? But for why they ain't showing profits now??? All I could figure out... Expenses: Other than operating cost, and other expenses like interest and etc. Have skyrocked.. Is all those additional expenses flowing to Cardiff???