I thought China tanked the P3 alliance idea recently, but maybe I missed the latest news. At any rate, with GSL, I'm not too concerned about short term market rates. As Berle and Mdx mentioned, to me the big disappointment has been GSL's inability to utilize their new debt structure in an accretive manner (or at all, really). So much extra interest expense with nothing to show for it... I hope they've got something big planned or else management is really going to look like a bunch of foul-ups.
Like Bearle61, my patience was exhausted about 2 weeks ago. I divested myself of all GSL (20k at $4.21) about two weeks ago and rolled it into NRF ahead of their spin-off event. I cannot tell you how happy and pleased I am that I pulled the trigger and unloaded my GSL.
I'm a big believer in shipping and plan to invest in the sector. I may venture back into GSL if it retreats back to mid 3s, and will continue to track and keep my eye on it.
I sold because of a few reasons:
1) Uncertain ownership structure. I am not convinced that management is concerned about common shareholders in the slightest. I am concerned about possible manipulation by CMA CGM.
2) No news and weak volume. I'm sure, like many of you, I had held more shares than the avg daily volume and that makes me very nervous. I was concerned about the ability to exit GSL.
3) I believe a rebound in BDI will be coming, but I guess I'd rather be with NMM or a company that pays me a healthy dividend now while I wait for that to occur.
I'll continue to watch GSL and may re-enter. Best of luck to all.
As a shareholder in NNA, you are right that they are being pro-active and active in deals, but where has all that been reflected in their share price? It has been languishing below $3.80 (for the most part) for quite some time now. Frankly, I'm getting frustrated with that holding as well. At least NNA pays a decent dividend to be patient.
I too hold significant (for me) positions in NNA and SFL, although not as significant as my GSL stake. You are exactly right though. In NNA's case, share price has languished BUT management is aggressively deal making picking up tonnage at hopefully what will be viewed as depressed prices. While we wait, I have no problem collecting a ~5% yield. Same with SFL except they have a ~9% dividend yield (and some stock price appreciation). GSL has neither additional stock appreciation nor yield nor have they announced any deals with this gigantic cash infusion and freedom from debt covenants. NNA has tapped their equity to generate capital to grow their fleet in this down shipping cycle. They have a diverse customer base as well. My cost basis on my GSL stake is below $2.00 so I'm not horribly disappointed, but I do wish I had exited more aggressively at the two pops that we have had above 6. I did sell about 15% of my stake but kicking myself for being greedy expecting those levels to be sustained WITH a dividend announcement. Come on Ian, time to stop playing 4 corners and deal. The GSL ships are aging and as above market contracts eventually roll off, we'll be in a world of hurt without a replenishment and growth strategy!
I trust the executive leadership of NNA quite a bit more than GSL, which is why I'm not currently holding GSL anymore until I get a clue about what the deal is with Ian and the GSL board and CMA CGM. This ship appears rudderless, at least temporarily.
Ian's got some explaining to do on the upcoming conference call. You can't restructure like this then fail on the follow-through! We need some new cash flow! Seal the deal on some new ships!
So when are you going to pay a divy?
Ian: Well that is a moot question since we are in growth stage?
Hmm, so I guess growth to Ian means taking on more expensive debt while having no deals lined up. Great. I'm getting a little tired of Ian's stuck up attitude as well.
This thing is incredible lost over 50% during the biggest bull market of all time now what happens if we get a 20% correction? Think this could hit 50 cents?
Is it possible to laugh and cry at the same time? I bailed out in the $4 range and glad I did. I'm hurting enough as it is with my shares in NNA. Ugh.
Any strong feelings one way or another? The new shares carry a higher dividend rate (8.75% vs 2.50% margin), but they repurchased the existing preferreds at a discount ($35mm for shares with a $45mm redemption preference). Can anyone think of any implications for GSL's relationship with CMA CGM? Michael Gross survived the annual meeting, so maybe this is all part of a grand bargain.
Hmm cma cashing out? Dont mind that. I find it strange that our debt yeild was just above 10% but this pref shares are 8.75%. Makes the debt deal look bad.