Swimming With Vultures
It was an almost perfect weekend around Chez Melvin. I say almost because the one fly in the ointment was that on Friday, after my column was published, I bought a shipping-related stock for the first time since my ill-fated foray into Paragon Shipping (PRGN) a few years ago. To say I was a tad early with that purchase is a huge understatement. Since I bought the shares, everything that could go wrong, or that management could do wrong, has happened. I still own the stock, but I do not expect to see my cost-basis until the Cubs win the World Series. Paragon was just the latest of my disastrous adventures with shipping stocks.
However, my inner vulture is very much on alert when it comes to shipping stocks. As I mentioned on Friday, Wilbur Ross has been very active in the sector. Blackstone (BX) and KKR (KKR) have ventured into the fray as well, buying tankers. We are seeing shipping-related bankruptcies and debt reorganization in the sector. There is a good chance that Overseas Shipping (OSG) will file for bankruptcy before too much long, adding to the carnage in the group....518 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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