ALL ESEA Ships are now Chartered and in Use Stock coming off bottom of chart turn around play
ESEA Moving towards profitablitty with a strong balance sheet
"On the investment front, we expect that very attractive vessel opportunities will be available during 2013 and we thoroughly monitor the secondhand markets. Our strong balance sheet and cash reserves allow us the comfort of being in a position to weather a difficult year without forgoing investment in additional vessels or the renewal of our fleet.
And there you have it. They NEED to renew their fleet badly. They have a 25 year old pana that needs to go. They have EIGHT other vessels 20 or older that SHOULD go. These vessels are worth about $425 per ldt and not a penny more. Take the dwt, divide by four and you get a rough idea of the steel in LDT in each vessel. They should NOT buy any vessels without unloading these. To put any of them through a fourth special survey in this part of the cycle would be stupid.
I agree that some of the vessels will have to go to scrap soon, others still may have a few years left on them.
In any case, even if you scrapped ALL of the fleet today, the share price should be at least over $1.35. (at $425.00 per ldt). This would however not take the EUROMAR venture as scrap since all of those vessels are quite recent and it then the value of this investment would be up for discussion at today's depressed values.
Euroseas is not being liquidated, however, this just gives an idea of the value of the company even at today's prices.
I wonder who has been buying the last 3 million plus shares that have traded over the past week, it will be interesting to see the next report from Friends and other institutional buyers.
I believe 2013 will still be a difficult year and ESEA will still be showing a loss (although a positive cash flow maybe). Next year should be better if the world grows at the expected levels.
Audio, you have good knowledge on the sector. I like to read your posts. I know that currently you are bearish on the sector.
I am curious, want to know what the top three companies are in your opinion.