The only negatives I can see with this company is that with rates being so depressed, revenues/earnings are going to suffer. Also, there's a little bit more debt than one would optimally like, but they're paying that down, too. As NM is now yielding 8% this looks like a very attractive entry point. What's not to like?
To me, it's all about the dividend and deleveraging. The banks of Europe are the key, are they not? If there is a panic and chaos in the EU, would credit seize up like it did in late 2008? That caused the BDI to drop below 700 and NM dropped below 2.00. If I were Angeliki Frangou I would be raising/hoarding cash like crazy and keep that dividend coming. But if she, or the banks, say cut the dividend, then so be it.
Earnings on the 15th, right. Should be interesting. A chance to re-vamp the slide show.
AF should MAN UP buy back stock and show some cajones that she and the company believe in the company. Draw a line in the sand and stay on the bid til the sellers drop. It would be immediatley accretive to earnings and REDUCE the dividend outlay. She should also comment on the company's strengths and its ability to flourish in this environment. Otherwise, its a retracement back to the lows or lower. For the price of one capesize she could reduce the float by 15 million shares or so. Its authorized and can be done. She didn't mind spending over 100 million to buy back preferreds why not reduce the float. Maybe the board could be REAL BALLERS and announce a $100 million buy back and really make an impact. Whats worth more to shareholders, 2 depreciating little income earning capes or a chance to take back a 30-40% of the company. She had this GOLDEN OPPORTUNITY in 2009 and could have bought back nearly half the outstanding shares, opportunity is knocking at AF's door......does she have a hearing problem????