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Euroseas Ltd. Message Board

  • j4664s j4664s Aug 10, 2009 12:38 PM Flag


    Why would ESEA announce a dividend ahead of earnings release? One might expect a positive earnings report.

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    • I doubt we see more than a few cents of earnings. Cash flows will support a modest dividend while the sector remains weak. Management is now cherry picking purchases on the cheap. Well run company, IMO.

      • 1 Reply to rtsliker
      • ESEA made the same announcement last quarter. The company is well run and fiscally conservative,, which has its benefits and drawbacks. Looking back at last quarter's run into earnings, it shed a dollar post earnings announcement, despite that it beat expectations. If ESEA can confirm the worst is over, meet expectations on earnings and revenue, and uphold guidance the stock should turn out okay. Positive guidance would be the best way for this stock to appreciate markedly, but the odds of that happening aren't good, even if management believes it is true (playing it safe like a good conservative company should). Most likely is that they take a cautious approach to forecasts and ESEA takes a near-term hit. The BDI has fallen considerably in the past two weeks and further dillution by the likes of EXM have created a lot of anxiety about the dry bulk sector. I expect the container shipping segment to be excellent this past quarter and dry bulk to meet or fall a little shy of earnings expectations.

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