Realize...ULTR's stock price is now dependent on EPS
Keeping in mind SC now has 110 mil shares they bought for $220 mil. They expect the share price to go up from 2 dollars a share otherwise they would not have done such an investment. Instead, knowing the Menendez family ...prior to this had the controlling interest...this was the only deal that was possibly allowed so that both parties will profit from the stock price going up. Even to the effect that the Menendez will be able to buy back 17 percent of the company when the stock price or certain numbers are reached.
I have said before, that eventually this stock's price will eventually be dependent upon EPS ...that time is now.
Can ULTR now have earnings? Yes. How many millions of dollars can ULTR have per year on $400 million dollars in revenue now that debt will be significanly reduced? Can they possibly have earnings of $28 million? Yes, easliy. If so, that would be come out to 20 cents a share for a 2 dollar stock with the best balance sheet and future outlook of all water transportation stocks with infusion of dollars for continuous growth. In Cramer's words he would say about ULTR..."best of breed"
They did this because they wanted to save the company. Absent the barge sales in q3, they would have run out of cash in q3. A quick look at the balance sheet would tell you that. They weren't going to make it to next year, despite what Laura says. Be thankful there is any value left for existing shareholders. You could have had a complete loss of capital. The deal still has to close.
Yes you can..... looking out 2 years from now. ULTR has the strongest foothold in their river business and will maintain it easily.
They now can double their OSV's with Petrobras by ordering more OSV's or even purchasing them. This company could easily double their revenue in 5 years and in 7 years be a "Billion dollar company". Very very significant! They have no assets which do not retain significant value and the assets they will aquire will be of the same nature. Nothing absolutely nothing like any other "water transportation" stock. The "one and only" company in this position...no others like it.