Earnings Calls: Getting Hot in Here (GNK, MS)

Usually earnings calls are pretty bland, with a recitation of the figures that everyone is looking at already, followed by Q&A designed to help fill out the analyst’s model (gotta get next Q’s estimates down to 4 decimal places!). The utility of these calls for value investors is often low, as analysts like to focus on the ultra short-term (see Saj’s post here). Even if not strictly useful, sometimes they can be entertaining. Today I came across this heated exchange between the Chairman of Genco Shipping & Trading (GNK) and Fotis Giannakoulis, a Morgan Stanley (MS) analyst.

From last Q’s conference call:

Fotis Giannakoulis – Morgan Stanley – Analyst

Yes, good morning. I want to ask you about the overall state of the market. And you mentioned earlier about the Korea Line and the turmoil that it has created. Although you do not face any problems, all your charters are very high quality, but do yousee that there might be other large operators, that they might have excess risk-taking over the previous months? And do you anticipate any other high profile defaults?

Peter Georgiopoulos – Genco Shipping & Trading Limited – Chairman

All we — I can’t answer about other operators or other high potential defaults. All I can tell you is we are very confident with thecharters that we have and throughout this whole crisis, we haven’t had anybody default on us. So — but to talk about other people, I cannot do that.

Fotis Giannakoulis – Morgan Stanley – Analyst

Yes, I am just trying to understand how risky the market is out there and if you think that there are a lot of people exposed. Ifyou can give us your good analysis on the market, not about the –

Peter Georgiopoulos – Genco Shipping & Trading Limited – Chairman

Hey, you know what, we run a company here, we do our job. We have the charters that we want to do business with that do agood job for us. For 20 years I have done this, both in tankers and dry, and no one has ever walked on one of my charters. You are the analyst, you should know the market, you should talk to the other companies. I’m going to tell you about my competitors? I can’t tell you about my competitors. I do not know what they do.

Talk to Frank about earnings calls

  • Mmel

    That is exactly what I would like to hear a manager say. That actually gets me more interested in the company.

    • Anonymous

      I agree – I liked his answer. The conference call transcripts gave me a good
      deal of confidence in management.

      Frank Voisin

  • Davidbrook23

    You are obviously an expert identifying good managers. The stock has dropped 70% since that call