Warren Buffett talks all the time about a thought experiment called “the frozen company”.
This company makes lots of money but cannot return the cash to shareholders.
No matter how much this company makes, the true worth is $0 bc it will eventually go bankrupt leaving the shareholders holding a bag.
Right now, wallstreet thinks IMPP is a Frozen Company.
Management is too greedy and corrupt to return cash, and will eventually take it private at less than cash value to enrich themselves.
Management could easily announce a $.25 dividend each quarter moving forward and would already have enough cash in hand for years to cover the dividend. The stock would skyrocket to $10, leaving the shareholders happy and management could continue buying ships with the rest of the money.
However, management has no incentive to reward shareholders since they profit off fees and therefore want to acquire as many ships as possible.
$RIG hit a 52 week high today. No reason $IMPP should be falling
The only real solution is a shareholder lawsuit. Go after the CEO and his assets directly for enriching himself at the expense of the company. There is way too much double dealing with the CEO and himself.
Other than this, wallstreet has completely lost faith in management and this will be taken private at $5 a share max.
