Tradewinds is reporting Star Bulk has sold a cape for 22M. I don't have subscription so can't see full article. Any one know which one? Thanks.
NM's cape still has a shelf life; none of the reputable shippers can operate outdated vessels. Star was nearly 18 years old, and 18-year-old capes aren't worth 55M...shoot, I know a guy who'd build you a new cape for less than that...
Decent move buy SBLK. dividend should be green-lighted by financiers this Q.
Star Bulk Carriers Corp. (the "Company" or "Star Bulk") (NASDAQ: SBLK), a global shipping company focusing on transportation of dry bulk cargoes, today announced that the Company has entered into an agreement to sell the Star Beta, a 174,691 dwt Capesize vessel, built 1993, to a third party for a contracted sale price of $22 million. The company expects to deliver the vessel to the buyers in the second quarter of 2010 upon its redelivery from the current time charter.
Akis Tsirigakis, President and CEO of Star Bulk, commented: "We are pleased having agreed to sell one of our oldest vessels. We look forward to concentrate on renewing and growing our fleet. Our entire fleet is secured by period contracts and following the sale of the Star Beta, 92% of the fleet operating days for 2010 will be contracted and the fleet average age will be 9.4 years."
Don't think this is good for the company. They issued stock and debt to acquire the vessel. If they don't pay down the debt or buyback the equivalent shares with the proceeds, then the stockholders have nothing to gain from the sale.
Did our hottie board member vote on this sale?
They sold another older ship with its charter about to end. Next stop for her is the scrap pile. Smart to dump her while you can. Chinese buyer probably overpaid. With all the shipping they do, I don't understand why the chinese companies with government help don't start buying more ships. Maybe a buyout of a stressed company... know of any?
This is a strange company. You really have to dig to find information. They must not believe in press releases. That being said, is the sale of one of their capesize vessels good news or bad? By the price action today, I guess it's not much one way or the other. Although I am happy to be looking at a green day, but the day still has 25 minutes left in it and yesterday's closing about made me hurl.