one person told me mercator singapore is a non index stock,eagle,dryships,navios maritime are all index stocks,BUT THEY FAIL TO REALISE THAT SOME INDEX STOCKS ARE LOUSIER THAN NON INDEX STOCKS.
look at eagle shipping-ALMOST CLOSE SHOP,bankrupt!!
MOREOVER MERCATOR SINGAPORE ALTHOUGH SMALL IN MARKET CAP,BUT ITS PARENT CO. MERCATOR INDIA IS 2ND LARGEST PRIVATE SHIPPING CO. IN INDIA
AND MERCATOR SINGAPORE IS STILL PROFITABLE,AND GIVES OUT DIVIDEND WHEREAS INDEX EAGLE IS ON THE BRINK OF BANKRUPTCY!!I THINK FUNDS AIN'T STUPID TO MISS OUT A GEM AND PICK EAGLE BLINDLY JUST BECAUSE IT IS A INDEX STOCK.
EVEN A CO. ON THE BRINK OF BANKRUPTCY,IN A COUNTRY OF 8% UNEMPLOYEMNT RATE(AFTER FACTORING IN USA POPULATION 60X OF SINGAPORE,300+M VS 5+M),AVERAGE DAILY TRADED VOLUME IS 80+K,VALUE USD $240+K,FRIDAY TURNOVER VALUE IS USD $160K,WHEREAS MERCATOR PROFITABLE,GIVES DIVIDEND.NOT ON BRINK OF BANKRUPTCY,IN A COUNTRY OF UNEMPLOYMENT 2%,friday turnover value is ONLY S$1.3K
AIN'T THIS A SIGN THAT SINGAPOREANS ARE NOT CASH RICH TO APPRECIATE SUCH A GEM IS LISTED IN THEIR OWN COUNTRY!!?
i rest my case
look at eagle shipping-ALMOST CLOSE SHOP,bankrupt!!
MOREOVER MERCATOR SINGAPORE ALTHOUGH SMALL IN MARKET CAP,BUT ITS PARENT CO. MERCATOR INDIA IS 2ND LARGEST PRIVATE SHIPPING CO. IN INDIA
AND MERCATOR SINGAPORE IS STILL PROFITABLE,AND GIVES OUT DIVIDEND WHEREAS INDEX EAGLE IS ON THE BRINK OF BANKRUPTCY!!I THINK FUNDS AIN'T STUPID TO MISS OUT A GEM AND PICK EAGLE BLINDLY JUST BECAUSE IT IS A INDEX STOCK.
EVEN A CO. ON THE BRINK OF BANKRUPTCY,IN A COUNTRY OF 8% UNEMPLOYEMNT RATE(AFTER FACTORING IN USA POPULATION 60X OF SINGAPORE,300+M VS 5+M),AVERAGE DAILY TRADED VOLUME IS 80+K,VALUE USD $240+K,FRIDAY TURNOVER VALUE IS USD $160K,WHEREAS MERCATOR PROFITABLE,GIVES DIVIDEND.NOT ON BRINK OF BANKRUPTCY,IN A COUNTRY OF UNEMPLOYMENT 2%,friday turnover value is ONLY S$1.3K
AIN'T THIS A SIGN THAT SINGAPOREANS ARE NOT CASH RICH TO APPRECIATE SUCH A GEM IS LISTED IN THEIR OWN COUNTRY!!?
i rest my case
Eagle Shipping (EGLE) Headed for Bankruptcy
March 10, 2012 – Comments (0) | RELATED TICKERS: EGLE
The collapse of dry bulk shipping rates over the last three years has caused the bankruptcy of several shipping companies, including Omega Navigation Enterprises and General Maritime Corporation. With this winter's decline in Supramax spot rates from over $14,000/day to under $8,000/day, it is likely that the shipping industry hasn't seen its last casualty. (See "BSI" on pg. 3, here and here).
Eagle by the numbers
When Eagle Bulk Shipping (EGLE) released its last report in November of 2011, the company's financial position already looked grim. The company had $1,129m in debt, and was facing a steep series of debt repayments scheduled for 2012. Specifically, the company was required to raise the following amounts over its next three fiscal quarters:
$28m in principal repayment, due June 30, 2012.$36m in interest repayment ($12m over three quarters).$9m to raise cash reserves from $27m to $36m (a loan covenant requirement)
Total: $73m by June 30, 2012
Eagle is unlikely to generate this kind of income. To achieve this the company would need to bring in $24.3m per quarter, which is unlikely considering their EBITDA was only $25.9m during Q3 2011, a period when Supramax shipping rates were at nearly double their current level.
To get a better picture of what kind of earnings we can expect from the company, I've built a model to forecast the company's earnings using the charter rates for each ship. I've calculated the daily income for each ship by subtracting $5300 in vessel operating expenses from each ship's daily revenue; for ships that aren't chartered out at fixed rates, I've substituted the average Supramax spot rate from each period. This ought to give us a reasonable estimate of the company's gross profit for each quarter. From this we can estimate earnings by subtracting the other major expenses of a shipping company, which are brokerage fees, drydocking expenses and overhead. I've estimated these expenses using their values from the last quarter. This gives us the following earnings projections:
As you can see, we should expect the company to only make some $37m by the end of March, and with shipping rates at their present levels they are unlikely to generate the remaining $37m they will need by the end of June. Eagle's lenders have restricted the company from selling its ships without permission, so unless they can renegotiate terms with their lenders or find a new equity investor, they won't be able to make their principal payment by the end of June.
Annual report delayed
Eagle has released its Q4 earnings and annual report on March 2 of every year since the company was formed. This year, however, the company has delayed until March 15 to release its report. So why have they delayed? Right now we can only give speculative reasons, but we might conjecture that management was looking for more time to try to renegotiate with lenders or find a new equity investor.
Investors would have good reason to avoid this company, too. Management's reputation has been damaged by a shareholder suit that alleges they stole tens of millions of dollars from lenders and shareholders (see article here, court filings here). On top of this, management registered the company in the Marshall Islands, which allowed them to structure the company in a way that transfers power from shareholders to management. Shipping finance is about trust, and when there are plenty of other shipping companies with trustworthy management that also need financing, we shouldn't expect Eagle to be rescued any time soon.
-Greg Womack
EAGLE(friday5oct cnbc)
DETAILED QUOTE (Delayed)
High Today
3.57
Low Today
3.45
Volume
54.2K
10-Day Avg Volume
83.9K
52-Week High (02/15/12)
9.80
52-Week Low (06/01/12)
2.51
1 Yr % Change (TTM)
-34.28
FUNDAMENTALS
Market Cap
54.7M
Shares Outstanding
15.8M
Price/Earnings
-1.1x
Revenue (TTM)
251.5
Earnings per Share
-3.05
Dividend + Yield
-- (0.00%)
Beta
2.51
VS MERCATOR LINES
| Result for : [ WatchList ] | Records : [ 3 ] |
 |
Page [ 1 ]
| |||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||
Mercator
No comments:
Post a Comment