Singapore Shipping Corp

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CHARTER DEFAULT INSURANCE CAN PROVIDE AN ADDITIONAL LEVEL OF SECURITY TO A LENDER

APPLICATIONS
While ship owners use charter default insurance to protect revenue, ship finance organisations may view it as important security for their own credit position.

Charter default insurance can be instrumental in building support for the raising of capital or investment through a bond issue, stock listing, finance lease, private equity or KG type finance. In 2011 a prominent analyst identified the support that charter default insurance provides as a major factor underpinning the stock price over-performance of one listed shipping company relative to its peers.

Charter default insurance can also be used in mortgage-backed ship finance, either to encourage a lender to provide a loan or to improve the terms of lending,

including pricing. The cost of charter default insurance might be absorbed, in whole or in part, by the saving in the cost of lending achieved by credit rating arbitrage between the charterer and an insurer.

Transferring counterparty credit risk to insurers rated ‘A’ or better may enable banks to offset the stricter capital requirements expected to be imposed under Basel 3 and should have a positive impact on the cost of lending.

When ship finance is in short supply, the additional security provided by insurance may help persuade a lender to reach a positive credit decision. The premium might be a necessary cost of securing finance.

In short, charter default insurance may help enhance financing terms or even unlock financing that would otherwise be unavailable.

http://uk.marsh.com/Portals/18/Documents...202012.pdf

(vested)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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Quote:Agency and logistic business remains profitable despite downward pressure on rates and a seasonal drop in specialized logistics projects. The Group took delivery of m.v. Capricornus Leader in September 2014. With two more vessels scheduled for delivery between November 2014 and March 2015, the ship owning segment is expected to perform better over the next 12 months. Through these latest acquisitions, the Group has accelerated its fleet renewal and expansion program. It continues to identify opportunities to build a younger fleet with quality long-term charters.

http://infopub.sgx.com/FileOpen/SECOND%2...eID=322982 [2Q 2015 Results]

1) Flat results as expected. Agency business improved in 2Q 15 compared to the previous quarter. Shipping revenue improved slightly with the delivery of the new vessel in mid Sept. Both 6,500 CEU vessels will be on 15 year charters generating approximately US$12.5 million revenue annually.

2) The first vessel was paid for entirely in cash. No new debt was raised. This will change next quarter when new vessels are delivered.

3) With all 3 vessels to be delivered and chartered out within the next few months, SSC will be a radically different company. Still no information on the charter terms of the newbuild vessel. I am expecting a stronger 2H 15.

4) I don't believe there will be equity fund raising. Though the last line seem to suggest more M&A in the future ?

(Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Ha-ha ! So I was wrong and Nick was right.

"The Group took delivery of m.v. Capricornus Leader in September 2014. With two more vessels scheduled for delivery between November 2014 and March 2015, the ship owning segment is expected to perform better over the next 12 months."

http://infopub.sgx.com/FileOpen/SECOND%2...eID=322982

(vested)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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SSC is slowly but ensurely on its steady new voyage... secret admirers have been consistently accumulating and the price trend for the last few months has resembled that of a bond.

However, Ow's steady course of adding 3 RoRos over the same period including a shiny US$80m new build will surely add the undervalued Call option to SSC.

Vested
Minor Core
GG
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(21-11-2014, 10:14 AM)greengiraffe Wrote: SSC is slowly but ensurely on its steady new voyage... secret admirers have been consistently accumulating and the price trend for the last few months has resembled that of a bond.

However, Ow's steady course of adding 3 RoRos over the same period including a shiny US$80m new build will surely add the undervalued Call option to SSC.

Vested
Minor Core
GG

hi GG, it has been trading at around 25-26 cents for the past few weeks, what gives the feeling that there are secret accumulators? haha
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(21-11-2014, 04:52 PM)safetyfirst Wrote:
(21-11-2014, 10:14 AM)greengiraffe Wrote: SSC is slowly but ensurely on its steady new voyage... secret admirers have been consistently accumulating and the price trend for the last few months has resembled that of a bond.

However, Ow's steady course of adding 3 RoRos over the same period including a shiny US$80m new build will surely add the undervalued Call option to SSC.

Vested
Minor Core
GG

hi GG, it has been trading at around 25-26 cents for the past few weeks, what gives the feeling that there are secret accumulators? haha

Feeling lor... especially when you see buyers consistently topping up their buy orders after being hit at 26 in the last few days...

What a feeling...

Vested
Can't see clearly
Don't follow blindly
GG
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Or is GG the secret admirer?
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I did take offer on Wednesday but has been a snipper as I never believe in chasing...

Offer at the right price... got bullets will seriously consider...

Vested
GG

(21-11-2014, 08:36 PM)valuebuddies Wrote: Or is GG the secret admirer?
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(21-11-2014, 06:41 PM)greengiraffe Wrote:
(21-11-2014, 04:52 PM)safetyfirst Wrote:
(21-11-2014, 10:14 AM)greengiraffe Wrote: SSC is slowly but ensurely on its steady new voyage... secret admirers have been consistently accumulating and the price trend for the last few months has resembled that of a bond.

However, Ow's steady course of adding 3 RoRos over the same period including a shiny US$80m new build will surely add the undervalued Call option to SSC.

Vested
Minor Core
GG

hi GG, it has been trading at around 25-26 cents for the past few weeks, what gives the feeling that there are secret accumulators? haha

Feeling lor... especially when you see buyers consistently topping up their buy orders after being hit at 26 in the last few days...

What a feeling...

Vested
Can't see clearly
Don't follow blindly
GG

I think you are the right. The volume for the buy queue looks high compared to historical values. Glad to have bought mine earlier Smile
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(25-11-2014, 11:35 AM)safetyfirst Wrote:
(21-11-2014, 06:41 PM)greengiraffe Wrote:
(21-11-2014, 04:52 PM)safetyfirst Wrote:
(21-11-2014, 10:14 AM)greengiraffe Wrote: SSC is slowly but ensurely on its steady new voyage... secret admirers have been consistently accumulating and the price trend for the last few months has resembled that of a bond.

However, Ow's steady course of adding 3 RoRos over the same period including a shiny US$80m new build will surely add the undervalued Call option to SSC.

Vested
Minor Core
GG

hi GG, it has been trading at around 25-26 cents for the past few weeks, what gives the feeling that there are secret accumulators? haha

Feeling lor... especially when you see buyers consistently topping up their buy orders after being hit at 26 in the last few days...

What a feeling...

Vested
Can't see clearly
Don't follow blindly
GG

I think you are the right. The volume for the buy queue looks high compared to historical values. Glad to have bought mine earlier Smile

Keep it slow and steady just like brewing vintage... its not about being right or wrong, its the process that matters...
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