Wednesday, July 8, 2009

Aries Maritime Transport in trouble

Aries Maritime Transport Limited is one of those Greek shipping companies listed on the NASDAQ exchanged in the last few years. Their symbol is RAMS. click here for link to google finance.

As I write this, the stock is trading for .64 US. That's less than 1 USD.

As recently as May 28, 2008 they paid out a stock dividend of .10 USD, when their stock price was trading around 6.00 USD. They are just like most of the Greek companies listed in the U.S. Paying out big dividends to keep investors buying their stock, but not putting any money away for a rainy day.

Well, it's raining cats and dogs, and they are in big trouble.

This, from Lloyd's List.

ARIES Maritime has said foreclosure of its ships is a real possibility, and it does not expect to meet its loan covenants in the near future unless its lenders provide relief.

PricewaterhouseCoopers, the company’s auditor, has raised “substantial doubt” about Aries Maritime’s ability to continue as a going concern, even as Aries pushes ahead with an intended takeover by fellow Greece-based company Grandunion.

click here for complete article

Don't buy this stock, and if you can get 64 cents for any shares you own, be happy.

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