First Market Day for Trump Administration
Beware of Greeks bearing gifts. Gorgeous George is in trouble with the Securities & Exchange Commission. According to CNAFinance.com, the CEO of Dryships, George Economou, lied to the SEC in multiple 6-k filings. It is alleged he did so using a Panama Papers proxy he owned and via corrupt Canadian officials. There also seems to have been a British Virgin Islands entity callled Kalani which refinanced the firm. Then it used the money to buy 4 Very Large Gas Carriers from Economou. There is an ongoing SEC investigation.
We bought the DRYS shares after the successful ipo in 2005 by Cantor Fitzgerald and sold when the price of iron ore started to fall. We bought despite Economou, an MIT graduate, already having filed for chapter 11 in 1999-- after all our future President also claimed bankruptcy at the time.
This is one where your editor intelligently opted to fold rather than hold. Back in Nov. when there was a short squeeze I warned you all publicly not to buy the soaring shares which went to triple digits. The shipping company run by a Greek but incorporated in the Marshall Islands, runs dry bulk carriers, of which the world has a surplus.
Trump's restrictions on trade will further hurt this sector.
The market is still trying to figure out what our new president, with the short hands and the short attention span, will mean for the dollar, stocks and bonds, and the US economy. Being of the same generation I know how hard it is to teach an old dog new tricks beyond tweeting that is.
Today is the first full market day of the Trump presidency and things do not look particularly good. He held a chat with business leaders and promised to remove 75% of regulations—which many of them probably have learned to live with. I think it would help if Mr. Trump were required to write a blog with real rather than alternative news.
More for paid subscribers follows including another Trump Administration stock pick. We have news from Britain, Germany, Italy, Dutch Antilles, Mexico, Brazil, Colombia, Panama, Chile, Argentina, Australia, Hong Kong, South Africa, and Israel.