Summary
Jim Cramer has a horrible track record both for recommending stocks and for his CEO choices, good and bad.
Analysis
It is not worth too much time to ponder whether or not Jim Cramer is correct on his "Wall of Shame" choice on the Dry Ships CEO.
A few days before Wachovia Bank was taken over he was signing the praises of that CEO and telling everyone who was listening what an upstanding and straight guy he was.
So, let's get past the Cramer analysis as it is not of value.
To the crux of the Dry Ships matter or any company that has experienced negative results for decisions made prior to the international meltdown we have been living with for neigh on to a year now, find one who can point to their decisions and honestly say they saw it coming and you will have found another liar.
The turndown in global economic activity and the billions of hedge fund and speculative dollars poured into these types of companies has more to do with Dry Ships and the rest of the listed shares of most companies than the prices paid for the ships in the fleet, even if we can all agree that they were high.
The better analysis should be on whether or not the company has a future and a role to play in the global economy in whatever a new normal for the global economy is going to be as some countries begin to emerge from the dust pile.
Dry Ships has a very good fleet for bulk transport and, with China and India emerging and especially China's current global commodity buying spree both for immediate needs as well as for storage, Dry Ships should see bookings increase and the rates will likewise begin to improve.
This is going to occur no matter who the CEO of the company is and at the end of the day will be what investors will focus on most.
It is really the job of the board of directors and the sharehholders to take the responsibility of the leadership of the company and, at the end of the day that is what will happen, Jim Cramer's opinion aside.
From what is available to be analyzed at the moment, it would seem that the company should be able to "ride the waves" and make it through and the stock is most likely a buy at this level.
