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FreeSeas Inc. (FREE) Message Board

  • heterodontbull heterodontbull Oct 28, 2013 11:47 AM Flag

    Over sold Under sold

    Some people say this is over sold. One person "Audio" says that it is undersold Can someone or multiple people come up here and show the fundamentals how they came up with these two polar opposites. Audio if you respond please just show how you came up with your conclusion and refrain from making back handed remarks and over excessive bashing please.

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    • Thread has potential...

      Sentiment: Strong Buy

    • I did not say oversold, I said over valued. They have two ships which are "mortgage free" worth about $20 million. But they have 5 ships on which they owe $60 million. The five that have mortgages are worth $30 million, using last couple weeks assessments of values by several different brokers' reports on actual sales of similar ships. They have a mounting trade debt, probably in the neighborhood of $15 million. They MAY get a cash infusion to cover some of that. So all in all, they owe more than they own, they have no cash. They MAY get some cash, but they are doing a deal with the devil to get it. Often this leads to BK. Death spiral financing may be what they are doing. They have NO time charters which add value to the ships. They have ships which are expensive to operate due to their age. They have two vessels which must undergo special surveys (every five years) this year still, and these are expensive and lead to repairs in order to be insurable. They have two vessels that are just now being downgraded by Rightship to a one star rating due to age. 18 is that magic number. One more next year, one the year after, two the next year. If you don't know about vetting, you should when it comes to FREE's fleet. Basically it means that many charterers will demand an actual physical inspection of the vessel prior to booking it. These are also expensive and time consuming.

      FREE as a company is hanging on by the barest of threads. When Handysized rates pull back in a few weeks, their current weak revenues will become positively anemic.

      They are completely at the mercy of their lenders and the top one wrote them off completely, resulting in a 100% dilution of the shares as it appears today. You basically got a 1 for 2 reverse split without the price appreciation which normally occurs.

      If you doubt my valuation of their vessels, read what FREE thinks. They say the vessels are only worth $54.2 million in the annual report.

      • 1 Reply to audiophul
      • Audio some of what you say has truth but most doesn't.. assessment of value using other ships maybe we should use p and L of other companies also. 2 worth 20? 5 worth 30? yet they owe 60...

        Overvalued??? give it a rest the Nasdaq has probably 10 small cap stocks that are under valued the majority are way over valued.. You act like a stock being overvalued is end all.. Why don't you list me 5 stocks that are undervalued....

        You preach this basher BS and fundamentals yet you just manipulate to fit your argument Politics is on other boards try them...

    • The two terms don't really mean a whole lot. They're just TA terms people throw around to try and sound smart.

      If you google the term "RSI" and click on the investopedia link, the video at the bottom gives a simple explanation. The website Stockcharts gives the RSI as well as Yahoo if you go to the interactive chart and click on "technical indicators".

      According to the RSI graph on Stockcharts it is much closer to oversold. You'll notice on Yahoo's graph it goes lower the farther out go. You can kind of manipulate it to give you the answer you want. That's why I don't put a lot of stock in things like this. But, regardless, nothing I'm looking at is saying it's overbought so Audiofool is talking out of the wrong end as usual.

      Sentiment: Strong Buy

 
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