I know DRYS has a high debt of 4.55 B. Are interests payments on debt the reason they only have operating cash flow of 114 M? Does anyone remember if they operated on a limited cash flow back in '07- '08 when they were a top performer in the sector?
Cramer did rate DRYS a buy but said his favorite was Diana, perhaps due to low debt of 408 M. However, Yahoo has "n/a" for cash flows so there's no way to really compare Diana with DRYS here.
The primary cause of their low to negative free cash flow over the last few years has been growth in vessels and drill ships. They are pumping more than they are making into new purchases. GE finally got the message and stopped with the dry bulk and tanker vessels. No-one really cares if ORIG buys additional ships since they are lining up longer term profitable contracts.
The problem is with the consolidated earnings report.
DRYS has debt of $1.7 billion.
And ORIG has debt of $2.8 billion.
And the consolidated earnings report confuses everyone that doesn't get the clean ORIG numbers and strip them out.
Yes, the interest payments are high.
Cramer may have a great resume.
But he has never done any research on dry bulk, he just has an opinion.
He's always late to the party, and he doesn't know a dry bulker from a barge.
However, in 2007-2008, DRYS had 40 million shares outstanding.
$18 per share in estimated earnings.
The BDI reached a high of 11,790.
Capes were getting $250,000 per day on the spot market.
And, it cost more to ship a cargo of iron ore from Brazil, than the cargo was worth.
But, that was just for a couple of crazy weeks in May, when RIO and BHP were trying some gamesmanship, to get market share from VALE.