Tuesday, September 15, 2009

Ethical Messages

In my last post I commented that this stock is a strong buy with a lot of positive feedback and background information on the company.All companies have flaws, the major flaw of this company is that 2 years ago while the nation's economic market was at its peak this company took out major loans to purchase more ships.No one knew there was gonna be sudden economic crash in the global markets.So with such bad timing it led to the big drops of the market value of this company from topping $130/share two years ago to just about $30/share last year to the current market price of about$7/share.All companies have debt but I'm encouraging the investment in this company now because its because its at its all time low where its such a risky purchase it only mean the profitability would be higher than other shipping stocks. I consider the decisions made by the companies CEO to borrow money just bad timing, now that we see that the economy is starting to slowly recover,international trading will start to move again and shipping rates and orders will go up which in my opinion is still a strong buy no matter what is on that spreadsheet.I'm not just going to look at whats on the papers now but whats more of the future.

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