About OCNF
OceanFreight Inc. is a global provider of shipping transportation services. The Company specializes in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials and crude oil cargoes through the ownership and operation of nine drybulk carriers and four tanker vessels. During the year ended December 31, 2006, the fleet of the Company consisted of eight Panamax and one Capesize drybulk carriers and three Aframax and one Suezmax tanker vessels with a total capacity of 1.2 million dead weight tons (dwt) and an average age of 13.9 years.
What the management is doing?
This is one company which can do much better just like its peer such as Drys, DSX etc. But unfortunately the management are making wrong decision at the wrong time. We have already seen the financial sector making lots of bad loans in the Housing market sector. So how is this related to this company.
Well for the starter, the management just issued some 60 million share around 1.60$ and already diluted the share holder values. The share has been battered left and right in the downturn economy. They collected some 147 million dollar so that they can buy some ship at some point of time. Well why couldn't have the management waited for some more time. Atleast once the BDI index have recovered, they could have negotiated a better price for the share.
And now we getting the news that they plan to offer some 1 billion share sometime, may be in phase manner. But why? I understand that they want to raise some capital to invest in the company. Thats fine but Why can't the management wait for a better time?
So what they are doing with the money they recieved. They are sitting with it and are waiting for the right time to buy a ship.
The less people here about the management, the better for this stock.
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