Dolphin Cove stock is back up, after the Jamaican founder vowed to buy back the company if he has to!
So if you weren’t keeping up with the Dolphin Cove drama, here’s a quick summary.
Dolphin Cove is a marine park with five locations in Jamaica. It’s owned by World of Dolphins Barbados, which is in turn owned by Dolphin Discovery in Mexico.
In February, Dolphin Discovery filed for bankruptcy in Mexico, citing over 200 million US dollars in liabilities.
The next day, Dolphin Cove’s stock price started plummeting. It lost 36-percent in the ten days after the announcement.
Our Taking Stock analyst, David Rose, predicted this would happen because there wasn’t much information. Dolphin Discovery is based in Mexico, so there’s a language barrier plus bankruptcy proceedings aren’t always public.
All that Jamaican investors knew was that Dolphin Cove’s parent company filed for bankruptcy. Plus World of Dolphins Barbados had pledged its 79 percent stake in Dolphin Cove as collateral on behalf of Dolphin Discovery. Which essentially means that they could sell their Dolphin Cove shares to help Dolphin Discovery.
Well, Dolphin Cove founder Stafford Burrowes told the Gleaner that Dolphin Discovery’s bankruptcy is a “them” issue and will not impact the local operations. He added that if they want to sell, he’ll buy. He said he’s already had offers to help him to purchase the shares.
That wouldn’t be a bad thing either as it would put Dolphin Cove back in Jamaican hands. Of course, the market has responded to this good news. As of March 11, Dolphin Cove stock is back up to 19 dollars and 30 cents, almost completely recovered since the bankruptcy news.
And that’s the bottom line.
What do you think of this Dolphin Cove news? Did you hold strong or did you sell your shares?
Wanna learn how to invest in stocks like Dolphin Cove?
Go to investingforbeginnersja.com.
Let’s get this money!