Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: Hohum77 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3217  
Subject: Dry Bulk Update: June 2009 Date: 7/1/2009 2:57 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 7
Hi,
One topic in major news media is the market run-up in Q2. A few
Dry Bulk companies had a good Q2, but to really see the impact for
the Dry Bulk sector, shift the quarter by 30 days (Mar 1 - May 31).
If it were only that easy to notice at the time

Shipper	31-Dec	30-Jan	27-Feb	27-Mar	30-Apr	29-May	30-Jun 
BHO* 2.50 3.70 2.10 2.38 4.50 4.28 4.05
DSX* 12.76 13.29 11.73 13.20 15.70 18.03 13.32
DRYS* 10.66 6.63 3.47 5.86 7.42 8.19 5.78
EXM* 7.04 6.60 3.86 5.31 7.11 10.70 6.73
EGLE* 6.82 5.34 3.76 4.72 6.52 7.78 4.71
ESEA 4.30 4.53 4.26 4.14 4.80 5.90 4.78
FREE 1.39 1.28 0.73 1.48 1.36 2.59 2.17
GNK* 14.80 15.55 12.27 13.87 19.10 26.15 21.72
NM 3.16 3.58 2.11 2.64 4.13 5.49 4.23
NMM 7.14 8.17 7.79 8.71 10.29 10.25 9.95
OCNF* 2.97 3.52 1.01 1.55 1.27 1.69 1.51
PRGN 4.75 5.25 3.72 3.72 3.24 5.28 3.64
SBLK 2.55 2.20 1.47 2.46 3.07 4.87 3.67
TBSI* 10.03 9.84 6.47 7.58 7.93 9.77 7.81
SB 6.68 6.30 3.80 3.39 4.26 7.50 6.56
ULTR* 3.19 2.28 2.06 2.68 3.72 4.81 4.43



"Marine Money week" ended last Friday. That's the shindig that gets
shipping execs and investment/finance folks together. One news item
from that meeting, $5B in orders/only $2B in financing and Commercial banks (paraphrasing)- don't look to us, we can't fund those purchases.

http://www.thestreet.com/_yahoo/story/10527399/1/anxiety-is-...

Opportunities are out there, how are companies taking advantage?

Start with the biggest newbuild acquisition story
NM takes ownership of 4 new Cape vessels for $324.5M with $240M in financing in place. Better still, the vessels have charters of 5 yrs, 10 yrs, 12 yrs, 12 yrs.
http://finance.yahoo.com/news/Navios-Maritime-Holdings-Inc-p...

SB has completed multiple deals.
i. Taking a newbuild Cape earlier than planned, and canceled a separate Cape order.
ii. Delayed delivery of newbuild Post-Panamax vessel
iii. Delayed delivery of a second Cape vessel
iv. Sold an existing Panamax vessel.

http://www.reuters.com/article/marketsNews/idINBNG4951202009...
(Link covers the first three events)

OCNF also completed multiple transactions
i. Sold an existing 1996 built Panamax for $21.95M
ii. Acquire a 2001 built Panamax for $25M
iii. Acquire a 2004 built Cape for $56M

ESEA acquiring a 2000 built Panamax for $27.5M with an existing charter. Since the company laid up a couple of container vessels, it
probably needs the additional revenue
http://finance.yahoo.com/news/Euroseas-Ltd-Announces-iw-1549...

SBLK announced a 5c/sh dividend for Q2

DRYS settled the last of its debt financing.

So what's next? Well, DSX had a secondary to raise funds and
OCNF still has $40M - $50M left to spend. My guess is that if
wants to acquire a newbuild, it probably has to be a deal similar to
NM i.e. a bank owns the vessels after previous owner failed
to complete financing. I suspect prospective buyer will need to bring
(significant) cash to the table.

I think OCNF did well with its transactions. Gain 5 years on
age of a Panamax vessel, and only pay $3M for that opportunity. Perhaps
other companies looking at 2nd hand vessels will use a similar approach.


Enjoy,
Hohum
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Dividend Growth Investing

Good Time for Dividend Champions?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement