I'm surprised the weakness in the preferred shares. Nobody wants em; I'm thinking with earnings they will move up a bit -- similar to the preferred of TOO post earnings (they have similar weak prospectus protection). once the bond offer is done, if they still have excess cash they can buyback preferred (or common, but only the preferred would be picked up I think).
I'm sitting on 80 Aug. 2.50 contracts. What caught my eye was they were cheaper than the Feb. and May contracts which seemed strange because usually you have to pay more to buy extra time. Currently, I own only the preferred, no common, but have no intention of adding 8000 shares of common. That would violate my self-imposed one company limit.
$1.80 should be strong support. I will add when they retrace it on the 50sma. The timing for the break up will probably happen on earnings. It takes a great amount of force to break through a resistance.
I'm with you Merovingian. Couldn't resist picking up $2.50 calls for August when they were selling for 5 cents a share. I have until August for this to play out. I did this because at $2.50 we're looking at a 20% yield and thought the market would reward that. We'll see. My largest holding is NRZ which has about a 17% yield but doesn't get any market respect; so nothing is guaranteed. I go by the distributable funds and the perceived counterparty strength going into the future. If I'm wrong, I'll either have to sell off the calls or let them expire worthless. Either way at 5 cents/share it's not a big investment. xx369's chart stuff makes my head hurt.
xx, I agree, longer term we will see a higher price than $2.65. I have made GSL my biggest single holding , having started a position in Jan. Have bought both ordinary and pref shares. Hope it works out.
I have a price target of $2.65 by the end of March. Will be hard to push this share much higher than that in the short term. Div yield @ 50c p.a. will be 19%, which is consistent with other shares with the same perceived risk profile. Hope I am conservative on this.
Sentiment: Strong Buy
They are. Every once in awhile Scottrade lists GSL bonds, but it's rare and they vanish quickly. I think they are hard to find because people just aren't selling. The company even tried to do an exchange in the past at higher than par value but got almost no takers. Holders are living up to their name.
Sentiment: Strong Buy
it seems too good to be true to buy up these shares at these prices both for gsl and cmre...and their preferred. any thoughts about the future of container shipping and sustainablity? I know everyone talks about contracts but the truth is if the other company goes bk there will be no contracts so there is no guarantee in contracts. cmre seems somewhat more solid on balancesheet than gsl but both have the contracts and gsl is partially owned by cmg shipping I believe...Goods will have to be shipped if there is trade but with a worsening economy globally, are we only getting less and less shipping? are other shippers likely to go bankrupt first?
I believe the company is repurchasing some of their debt. Does anyone have the CUSIP on this debt - and can it be purchased on the open market? I have looked in my Vanguard account and cannot find the debt security. Thanks.
Yes, my plan is to hold since GSL seems capable of handling the payments for the next 4-5 years as long as CMA CGM remains stable. I bough low enough that 4 years of dividends makes my investment whole.
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With a world-wide recession that will likely continue through 2017, it's going to be a long wait. I have sold all my stock but GSL preferred. I've just got to wait and see the next earnings report.