Does anybody have a breakdown of equity ownership structure?
It appears that management has recklessly over levered on debt to empire build. Yes, there was a drought and delayed delivery of some of their ships, but that is no excuse to be so excessively levered on debt.
Does managment own a decent equity stake or are they simply empire building at all costs and therefore recklessly taking on extra debt to expand?
"Equity capital is needed and welcome get rid of debt"
Are you aware the market cap is about $45M? If they want to cut the debt load by even 20% that is $100M, which means whoever puts that money in (assuming current prices - could be less given the leverage and risk) would own 70% of the company - e.g. if you own 10% now, after that you would own 3%.
Raising equity when you stock is practicaly at zero (rightly so IMHO) is extremely punative.
Now that ULTR is gettng booted from the Russell index, anyone know when the forced selling from index funds and ETFs begins?
The Menendez Ross family, primarily the CEO Felipe and VP brother Ricardo, own at least 54% of the outstanding common stock through the following two companies: Inversiones Los Avellanos S.A. and Hazels Investments Inc.
By a 2006 agreement, many of the abovementioned shares have 7 votes per share in order to have a firm family control of the board.
This is a correction to my post of several months ago. The Menendez Ross family owns at least 26.2% of ULTR common. The table I used for information consolidates the ownership of ULTR by Hazels (Bahamas) and Inversiones Los Avellanos (avellano translates to 'hazel' in Spanish) and states it twice in the same table. Both of these companies are subsidiaries of SIPSA S.A.
In 2010, the Menendez Ross family, through Hazels, bought nearly 3 million shares from AIG-GE subsidiary Solimar. I don't see any evidence that they have purchased shares since. I don't know if one can rule out whether they own any of ULTR's debt.
Why does Yahoo show at least 65% of shares held by institutions and mutual funds?
Given the heavy debt and interest payments, it seems like it would be pretty difficult to generate equity value. Assuming around a 10% rate on their debt, they have like $50M in interest payments/year they have to service. After such high interest expense alone, how do you see them generating sufficient cash to cover operating expenses and at the same time be able to paydown their debt?
Seems like if they get hit by another drought next year, they will be forced to sell ships to avoid defaulting on debt.
I have trouble understanding how they create equity value being so levered. thoughts?