ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

ship became submarine?

(09-01-2014, 05:39 PM)kayhian Wrote: [ -> ]ship became submarine?

After a good long rest, submarine has returned today and managed to close at 6.9 cents. Not too bad, still can trade so high.

I was just wondering if they dont raise money through rights issue, how are they going to pay out decent dividends? Well, if they pay dividends of 0.1 cents each quarter, existing shareholders will still find a reason to hold on to their shares, only to watch it drift lower and lower as more people give up over a decade.

Hopefully i am wrong, who knows a turnaround may just be round the corner

(05-03-2014, 12:04 AM)safetyfirst Wrote: [ -> ]

(09-01-2014, 05:39 PM)kayhian Wrote: [ -> ]ship became submarine?

After a good long rest, submarine has returned today and managed to close at 6.9 cents. Not too bad, still can trade so high.

I was just wondering if they dont raise money through rights issue, how are they going to pay out decent dividends? Well, if they pay dividends of 0.1 cents each quarter, existing shareholders will still find a reason to hold on to their shares, only to watch it drift lower and lower as more people give up over a decade.

Hopefully i am wrong, who knows a turnaround may just be round the corner

First, make sure the management is paid with shares instead of cash. If not, no management accountability to shareholders.

http://infopub.sgx.com/FileOpen/News_Rel...eID=289135

Sold 2 vessels to repay debt.

(Not Vested)

Looks like people are buying for the turnaround story, so far revenues only can service the loans but not distributions.

I would think that Rickmers a better deal comparing to FSL, if I were to take a serious step back into shipping trust again

(05-03-2014, 01:30 AM)kayhian Wrote: [ -> ]

(05-03-2014, 12:04 AM)safetyfirst Wrote: [ -> ]

(09-01-2014, 05:39 PM)kayhian Wrote: [ -> ]ship became submarine?

After a good long rest, submarine has returned today and managed to close at 6.9 cents. Not too bad, still can trade so high.

I was just wondering if they dont raise money through rights issue, how are they going to pay out decent dividends? Well, if they pay dividends of 0.1 cents each quarter, existing shareholders will still find a reason to hold on to their shares, only to watch it drift lower and lower as more people give up over a decade.

Hopefully i am wrong, who knows a turnaround may just be round the corner

First, make sure the management is paid with shares instead of cash. If not, no management accountability to shareholders.

management still not paid with shares ....

SELL!!!!!

First Ship Lease Trust (FSLT SP)

Watch out for potential turnaround

- Turned profitable in 2Q14. Paying down debt and compliant with relaxed covenants.
- Potential upside if original covenants are met. Improvements in fleet value and ongoing debt repayment could lift VTL ratio.
- No rating or TP.

http://research.maybank-ib.com/pdf/docum...4_6659.pdf [Report]

(Not Vested)

out of the 3 listed ship trusts in Singapore in the past:-

1. Pacific Shipping Trust ("PST")
2. First Ship Lease Trust ("FSL")
3. Rickmers Maritime Trust ("RMT")

PST was taken private back in 2011 at a good price.

While 2 other did not did so well. RMT undergone a restructuring before in 2009/2010 period
FSL in distress now over problems similar to what RMT faced in the past.

Also, feels that Shipping industry still have a long time before recovery

this is a tough industry, most will fail and only a few will do well