US SHIPPING ISSUES

US Shipping (USS) problems began months ago when they postualted about the safety of the distribution. The stock dropped to 8. Then they said the distribution was safe and the stock rallied to 12. Now the company announces its distribution of 45 cents which is in line with last quarter. But they go on to say that distributions will not be paid the the general partners and subordinated unit holders and that the conversion for those units will be pushed back. The savings will go to getting the US Shipping financial house in order. I'm not sure how this will be recieved. Citigroup is not seeing things with a bullish eye. They keep the stock at a sell and lower the target price from 12 to 9.50.

Nothing else in the news department this morning. Stock futures are soft but not tragic this morning. Volitility yesterday gave the feel of a bottoming process underway but we never know with these things until we're long past the bottom. Oil and natgas are up.