Well at the time the deals were done, the market was still declining and I bet that the "behind the scenes" part of these deals were still when the shipping market was hot.
Too much is made regarding George and his related transactions, its part of the Greek way of doing business.
Well at the time the deals were done, the market was still declining and I bet that the "behind the scenes" part of these deals were still when the shipping market was hot.
Too much is made regarding George and his related transactions, its part of the Greek way of doing business.
I didnt read the dilution portion, rather the issue was loan convenants, which is an issue with MOST of these bulkers, LTV since the resale value on bulkers has crashed with rates.
I read the filings today and I dont see anything new at all that I didnt know..meaning the release on the Capes deal which we gave shares in lieu of payment, AND warrants..but the warrants have a 5 year vesting period and are priced between 30 and 40 each..which is just fine.
I also read that if the drill ships spin does not occur, then DRYS will not take the two other drillships from Cardiff, and if the spin DOES occur, they get 25% interest..which is fine, since they are giving 2 of 6 drillships.
So unless you are seeing something I am not, the loan covenants are the only new issue, but when we think about it, that isnt new..and DRYS isnt the first to come and say this either.
VH2,
I didnt read the dilution portion, rather the issue was loan convenants, which is an issue with MOST of these bulkers, LTV since the resale value on bulkers has crashed with rates.
I read the filings today and I dont see anything new at all that I didnt know..meaning the release on the Capes deal which we gave shares in lieu of payment, AND warrants..but the warrants have a 5 year vesting period and are priced between 30 and 40 each..which is just fine.
I also read that if the drill ships spin does not occur, then DRYS will not take the two other drillships from Cardiff, and if the spin DOES occur, they get 25% interest..which is fine, since they are giving 2 of 6 drillships.
So unless you are seeing something I am not, the loan covenants are the only new issue, but when we think about it, that isnt new..and DRYS isnt the first to come and say this either.
I just read that and I didnt see anything I didnt know already, here is what I read-
Prospectus in October is old news..we knew this..the 25M shares we know about, it was done last year.
Page S-16 is confusing and I had to read it again, but here is how it breaks down..
The assumptions for all and any shares to be issued would be 6.5M for the cancellation of the 9 Capes, which was announced and we know..the 5.2M shares which COULD be issued if the 3 Capes which were agreed upon but not taken were paid in SHARES, which was laid out in the earlier pages..that is a COULD, not assumed (page S-7)
Also I think the part of the unknown is the drillship spin..that would be 25% of shares which would be issued if we took the two other drillships.
Look at the actual on page S-16..43.5 which we know.
In total DRYS scrapped 12 Cape purchases and with that came a loss of deposits, which is the case in any contract that is broken, but we knew that already.
I dont see 40M more issued..am I missing something?
I just read that and I didnt see anything I didnt know already, here is what I read-
Prospectus in October is old news..we knew this..the 25M shares we know about, it was done last year.
Page S-16 is confusing and I had to read it again, but here is how it breaks down..
The assumptions for all and any shares to be issued would be 6.5M for the cancellation of the 9 Capes, which was announced and we know..the 5.2M shares which COULD be issued if the 3 Capes which were agreed upon but not taken were paid in SHARES, which was laid out in the earlier pages..that is a COULD, not assumed (page S-7)
Also I think the part of the unknown is the drillship spin..that would be 25% of shares which would be issued if we took the two other drillships.
Look at the actual on page S-16..43.5 which we know.
In total DRYS scrapped 12 Cape purchases and with that came a loss of deposits, which is the case in any contract that is broken, but we knew that already.
I dont see 40M more issued..am I missing something?
We
have entered into an ATM Equity OfferingSM Sales
Agreement with Merrill Lynch, Pierce Fenner & Smith Incorporated, or Merrill
Lynch, for the offer and sale of up to $500,000,000 of our common shares, par
value $0.01 per share, offered by this prospectus supplement and the
accompanying prospectus dated October 17, 2008. The Company
previously filed a prospectus supplement pursuant to Rule 424(b), dated November
5, 2008, or the November 5, 2008 Prospectus Supplement, relating to the offer
and sale of up to 25,000,000 common shares. The Company issued and
sold a total of 24,980,300 common shares pursuant to the November 5, 2008
Prospectus Supplement, the net proceeds of which were $167.1 million after
deducting expenses of the offering. The Company does not intend to
offer any remaining shares under the November 5, 2008 Prospectus
Supplement.
Very first page:
We
have entered into an ATM Equity OfferingSM Sales
Agreement with Merrill Lynch, Pierce Fenner & Smith Incorporated, or Merrill
Lynch, for the offer and sale of up to $500,000,000 of our common shares, par
value $0.01 per share, offered by this prospectus supplement and the
accompanying prospectus dated October 17, 2008. The Company
previously filed a prospectus supplement pursuant to Rule 424(b), dated November
5, 2008, or the November 5, 2008 Prospectus Supplement, relating to the offer
and sale of up to 25,000,000 common shares. The Company issued and
sold a total of 24,980,300 common shares pursuant to the November 5, 2008
Prospectus Supplement, the net proceeds of which were $167.1 million after
deducting expenses of the offering. The Company does not intend to
offer any remaining shares under the November 5, 2008 Prospectus
Supplement.
Also, I think that the "new" offering isnt really new..page one.
It is "refreshing" the previous prospectus, I think more than anything it is a move to appease the banks, that IF the need was there he could versus default, but I dont see it happening.
Also, I think that the "new" offering isnt really new..page one.
It is "refreshing" the previous prospectus, I think more than anything it is a move to appease the banks, that IF the need was there he could versus default, but I dont see it happening.
See the previous prospectus was pretty much finished, that was last year at MUCH higher prices of course, the new prospectus gives him the opportunity if the need comes.
It might be a way to work out the balance due on the drillships IF the spin does not occur, so we could keep the business in house AND be able to pay for the balance...430M already paid, 500M ballpark due for the two drillships.
Just thinking out loud here, if the market does not improve and the drill spin does not occur, then in 2010 there are payments due and this could make it happen without making the banks angry, IF loan covenant restrictions happen.
That seems more likely to me.
See the previous prospectus was pretty much finished, that was last year at MUCH higher prices of course, the new prospectus gives him the opportunity if the need comes.
It might be a way to work out the balance due on the drillships IF the spin does not occur, so we could keep the business in house AND be able to pay for the balance...430M already paid, 500M ballpark due for the two drillships.
Just thinking out loud here, if the market does not improve and the drill spin does not occur, then in 2010 there are payments due and this could make it happen without making the banks angry, IF loan covenant restrictions happen.
I have toyed with this stock off and on but am ready to make a bigger bet if it's time.
I think the markets will look to beat this down the next few days. Probably see it possibly even dip into the $6 range . . . where it definitely would be a good buy.
I'm just interested to see what they are going to do with the excess cash they will have from the offering. Could it be:
Paydown some existing debt? Further downpayments on future rigs?
I'm just not sure. That being said I think it is a good opportunity in the 6 range . . . if you have a long term horizon. At least the BDI is back above 1,000 again. Hopefully it continues its uptrend.
Quote Originally Posted by accventures:
So Wall......buy here or not?
I have toyed with this stock off and on but am ready to make a bigger bet if it's time.
I think the markets will look to beat this down the next few days. Probably see it possibly even dip into the $6 range . . . where it definitely would be a good buy.
I'm just interested to see what they are going to do with the excess cash they will have from the offering. Could it be:
Paydown some existing debt? Further downpayments on future rigs?
I'm just not sure. That being said I think it is a good opportunity in the 6 range . . . if you have a long term horizon. At least the BDI is back above 1,000 again. Hopefully it continues its uptrend.
I think the markets will look to beat this down the next few days. Probably see it possibly even dip into the $6 range . . . where it definitely would be a good buy.
I'm just interested to see what they are going to do with the excess cash they will have from the offering. Could it be:
Paydown some existing debt? Further downpayments on future rigs?
I'm just not sure. That being said I think it is a good opportunity in the 6 range . . . if you have a long term horizon. At least the BDI is back above 1,000 again. Hopefully it continues its uptrend.
Depending upon the action of the general market this week you might be able to get some at $4 or $5. Which I think is a great deal for the long run.
Quote Originally Posted by VirginiaHoldem2:
I think the markets will look to beat this down the next few days. Probably see it possibly even dip into the $6 range . . . where it definitely would be a good buy.
I'm just interested to see what they are going to do with the excess cash they will have from the offering. Could it be:
Paydown some existing debt? Further downpayments on future rigs?
I'm just not sure. That being said I think it is a good opportunity in the 6 range . . . if you have a long term horizon. At least the BDI is back above 1,000 again. Hopefully it continues its uptrend.
Depending upon the action of the general market this week you might be able to get some at $4 or $5. Which I think is a great deal for the long run.
why buy now its going lower and i mean new 52 week lows.
GE is selling $500,000,000 worth of new share out into the market to pay debt down on drill rigs.
drys might see $1 per share this week.
dilution to the fullest extreme going on here. he will atleast double the O/S maybe triple or more at these prices they're being sold out at.
do some calculating on the volume and prices of the recent days since the shelf registration and you can kinda have an idea of how much more selling will go on. or just wait for the day when drys does not have 25 million or more shares traded. that should mark the end.
why buy now its going lower and i mean new 52 week lows.
GE is selling $500,000,000 worth of new share out into the market to pay debt down on drill rigs.
drys might see $1 per share this week.
dilution to the fullest extreme going on here. he will atleast double the O/S maybe triple or more at these prices they're being sold out at.
do some calculating on the volume and prices of the recent days since the shelf registration and you can kinda have an idea of how much more selling will go on. or just wait for the day when drys does not have 25 million or more shares traded. that should mark the end.
a good deal on DRYS is around $3 or less. thats all depending on how many shares have already been sold out into the market. hell a good price might even be $1 a share or less.
a good deal on DRYS is around $3 or less. thats all depending on how many shares have already been sold out into the market. hell a good price might even be $1 a share or less.
you know GE only cares about the company not the share holders. do you think the 25 million a day volume has been shorts ???
its obvious whats going on here. hes already started selling the shares out. look at the last time he did a shelf registration with cantor fitzgerald. those shares hit the market with the next few days (25million)
as for the bank not pushing for it. i read on yahoo that 1 of their creditors is in bad shape itself. so i would not be surprised if they were pushing it. Dexia Credit Local NY Branch
Drys will survive but at a huge price to shareholders.
walls
you know GE only cares about the company not the share holders. do you think the 25 million a day volume has been shorts ???
its obvious whats going on here. hes already started selling the shares out. look at the last time he did a shelf registration with cantor fitzgerald. those shares hit the market with the next few days (25million)
as for the bank not pushing for it. i read on yahoo that 1 of their creditors is in bad shape itself. so i would not be surprised if they were pushing it. Dexia Credit Local NY Branch
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