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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (33152)	12/29/2008 11:20:46 PM
From: Madharry	Read Replies (1) \| Respond to of 78644

I spent quite some time reviewing this company with a skeptical bent. I looked at the website as well as the lengthy 20f filed with the SEC. I will follow it and root for the value thread holders but Im not going to buy it for the following reasons: I fear that in this type of company management interests are not sufficiently aligned with those of other shareholders. This is backed by the lack of dividends, the cashing out of share in the follow on offering, and the lack of significant purchase of shares at what appear to bargain basement prices. I also note that there appear to be 2 classes of shares as the 20f mentions management as having some 14% of the beneficial interest but over 42% of the voting control. I havent seen too many of these situations resolve themselves favorably for investors. The shipping field is also rife with insider transactions which tend to to benefit the insiders at the expense of other shareholders, The bahamian registration doesnt promote much confidence that minority shareholders will any avenue to address wrongdoings either. Lastly the cash on the balance sheet could be very deceiving. it represents the company on a consolidated basis but the cash may well be stuck in operating entities that have no means of getting it back to the holding company because of fx or other restrictions.