Friday, January 28, 2011
Sold Mermaid Maritime, a disappointment
We sold our meagre holdings in Mermaid Maritime (5000 shares at $0.41), which has been a disappointment. Since the loss of key management, the company has been trying to restructure as a drilling company with the purchase of two oil rigs from Keppel Corp, but we believe that without credible management, it will be difficult for the new entity to succeed. We have reluctantly cut our losses on the stock, and the experience will serve as a reminder that companies with suspect management should not feature prominently in an investment portfolio.