Shares of Oceanfreight (OCNF) tanked yesterday after the CEO and CFO mysteriously quite. The stock tanked to below IPO pricing levels on record volume. The two company officials quit without giving any reasons to investors. The company was also downgraded immediately after by Ferris Baker Watts to neutral until the company addresses the issue. Whatever the reason may be, it is almost never positive when two high ranking company officials silently quit their job. I suspect something much worse than anyone thinks could be happening in the near future. Accounting irregularities and high ranking officials quiting are two reasons to sell a stock. This is no different with shares of Oceanfreight (OCNF).

The company recently announced earnings that missed estimates, earning .14 cents per share. Analysts were expecting .20 per share, representing a 30 percent shortfall. This was especially shocking since charter rates hit all time highs during the last quarter. You have to wonder, if they miss estimates with charter rates at all time highs what happens if the Dry Bulk Index falls? Investors should be cautious with all of the turmoil surrounding the company. Where there is smoke there's fire.