At a time when most larger companies like Tidewater, Hornbeck, Teekay and others have older OSVs either stacked or beyond 20 years of age....yet to be disposed of...you have ULTR who has only New OSV's and all of them made for deep waters.
Well within one year, during 2013, ULTR will show how profitable they are as well as the gauranteed future revenue and earnings which their OSV investment has provided. Of more significance will be the fact of new investments made to easily double ULTR's OSV population....keeping in mind to order OSV's (note: most all companies in this business wish they only had deep water type as that is now the future of significant profits) you do a down payment not paying upfront cost of the entire ship.
Know this, they are waiting to figure out what percentage of 220 mil will be investment for OSV's and what will go to paying down debt. You can be sure either way, they will easily be able to pay off significant debt and yet only have to put a down payment to order more OSV's.
Personally I will continue to invest more and more in this stock...knowing I am part of a far much larger company than prior to Southern Cross's investment.
Over 25 percent of all OSV's and AHT's are currently over 25 years of age. Then do the math on how many of them left are capable of deep water and the future need for these types of ships.
River business...a done deal....perfectly placed and perfect timing for continuous growth and revenue.
Ocean business...profitable but of less significance
Offshore.....huge business...especially for ULTR knowing all ships new and of the kind the future is in need of. Plus...significant dollars now available to invest to grow this business far more than anyone could have predicted even a month ago. 2013....ULTR's watershed year!!!
by the way, for those of you trying to instill some type of fear for the 2017 bonds.....I will bet anything this will be a non issue...they are bonds....and that was how it was invested as. No one is going to argue with getting paid back in these times...really? Less than 2 weeks away and this will be seen as a rediculous position. Southern Cross is now in the driver's seat and they need this stock to go past 2 dollars a share....nothing is going to stop that. Nothing! : )