Another Q explosion!
Update: OTCMAGIC wrote the initial article on OSGIQ when the stock was trading around $0.55 shortly after the stock hit the OTCBB and recorded an all-time low of $0.42 per share.
Like AAMRQ, FNMA and FMCC before it OSGIQ has made a spectacular run since going bankrupt and having the stock delisted to the Pinks and declared by most to be worthless. Whether any of these stocks has real value remains to be seen however one cannot ague that all of them have provided investors spectacular gain vehicles in the past year.
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Original article on OSGIQ written when the stock was around $0.55 per share: Overseas Shipholding Group Inc. (PINK: OSGIQ), fits the bill perfectly; one of the largest operators of oversea's tankers in the world OSGI traded as high as $90 per share back in 2007 and has been dropping like a rock since.
OSGIQ has made an explosive move since trading on the pinks in the 2nd week of November. This came after OSGI filed for bankruptcy protection sending the stock to an all time low of $0.42
There were several factors that led to this bankruptcy; one of them is the declining price of oversea's tankers over the past few years (if OSGIQ had put a fair market value on their fleet instead of carrying them on the books at cost it would have whipped out $1B + in assets) what finally sunk them was when they had to withdraw a $241.8 million loan guarantee after Bloomberg News reported that the Companies ships were in Iranian ports, this was followed by U.S. House Majority Leader Eric Cantor publicly asking the Transportation Department to reject OSGI's loan application.
If this was not bad enough, Overseas Shipholding issued a regulatory report in the middle of all this stating that "investors could not rely on its financial statements for the last three years" This unfortunate chain of events led to OSGIQ being completely shut out of the credit markets and it was only a matter of time before the Company went belly up.
Overseas Shipholding joins a long list of ocean transport Companies that have recently gone bankrupt as a weak U.S economy and more competition has driven shipping prices to all time lows. Considering how fast and how far OSGIQ has fallen with no significant upside corrections or short covering rallies this one is more than do.
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