One of the greatest lessons I’ve personally learnt was from Rickmers Maritime. I wrote about it back in 23 November 2014 here, back when Rickmers was trading at around $0.30. Took a detailed look especially into the distribution policy, and found that dividend policy mandates that it can only distribute to the maximum of USD$0.006.
“So basically, Rickmers is able to give out a maximum of US$0.006 quarterly up till 31 Dec 2015 or whenever it chooses to end it. To me, this means that there’s only 1 more year till things get ugly. (Both in terms of dividend yield and share price)”
Indeed, when I dug into its fundamentals, it revealed a weak company with dwindling fundamentals. Fast forward to today, I was right!
It’s a great reminder for me to always question assumptions or look deeper into why certain things happen. What are the things going on in the market that we should question the assumptions or dive deeper into the facts? Let’s prepare for the next big opportunity!