Make sure you get your proxy votes in.
I voted for each of the proposals as follows:
I firmly do not support further dilution of share value with an additional share offering. The company needs to gain more real value in capital assets first. Buy ships and employ them Herb, then I will think about additional shares.
EPS is already struggling. Dividends will struggle with share dilution as well.
Every share offering is a corresponding value hit for existing holders.
I would rather see reduced dividend and increased share value for now.
BUY SHIPS HERB! YOU HAVE MONEY, BUY THEM!
Sell a couple ships, pay off debt, and stop the ponzischeme-like dilution. I remember this near $30 and they have issued shares all the way down. Share price can't appreciate until you stop the printing press!
Without the extra share dilution, they will eventually have to cut the dividend.
They cut the dividend then the SP drops.
Its a tough position. They need global growth, less competition, then which hopefully the rates will shipping rates will rise
I am okay with a Dividend cut. They need to buy more ships with the money. He has gone 4 years without a new ship. That is long enough. The iniitial hull buys are getting long in the tooth now, regardless of "technical condition". As ships age, it is a fact that operating cost climbs non-linearly. Just like any complex captial asset. Herb needs new hulls both for increasing real company value, and for gaining the edge on aging hulls. Of 20 assets, four are from 1997, four from 1998, and two from 1999. That means half the fleet is about 16 years old, ie. past midlife. Given the average scrapping age is down to around 22 years old these last few years, (this is driven primarily by economic viability of operations), Herb is facing some tough outyear choices. Granted he pays cash for ships, and thus faces less pressure from loan and finance maintenance, but that does not mean he is not thinking about the age of these units. He wants to grow the fleet, fine. I am all for it. But he needs to plan now for asset replacement to maintain or grow more. What is his plan?