As I have thousands of shares, I really wish it would go up but the reality is that when they cut the dividend they gutted the PPS and the market does not trust them one iota... If they were a dry bulker it might be different but they aren't... As far as any price appreciation, I see this as dead money for a long, long time___ I will continue to hold and collect the dividends as long as they pay them but it will take years for me and many others to break even on this one... Beware of Greeks bearing gifts...
The Sardonyx and Spinel - built in 1995 and 1996 - seem likely to be scrapped when their charters expire early next year. It seems extremely unlikely that rates for old panamaxes like those will rise enough in between now and then for the company to be able to re-employ them at a profit.
The company’s other outdated panamax ships have until 2015 or 2016 until their above-market charters expire. But by that time the expansion of the Panama Canal is expected to be finished. The larger Post-panamax ships will be able to cross the canal, and I’ve read one source that says it’s expected to put further pressure on the panamax size vessels.
As we all know, the company’s bet on this size container ship a few years ago has not payed off. Personally, I wouldn’t expect any major improvement in the coming years. The company’s last move to go to bigger, newer ships might be the right move. But the debt level is rather high now, so the only resource they have to expand in that direction is money from scraps and equity dilution.