Because the shipping industry is having a really hard time and losing tons of money every year. NEWL will likely consider a bankruptcy filing and re-organize, shafting all previous stock holders. I say SELL!
I make some home work for all those "rats poor knowledge" that write here on this board
1. Investment of $236.4 millions for 36.8% reflect company value of $642 millions.
2. NEWL pay for the first mine $55 millions on Jan. - 2013
3. Revenue for 2013 of New Lead Holdings: income from fleet vessels $40 millions
income from the first contract coal supply (sign on Jan. - 17, 2013) $185 millions
for the first year income from the second contract signed on Jan. - 24, 2013
$64 millions, coal deal from Feb. 26, 2013 $148 millions
The total revenue is now $439 millions the average profit is 25-30%
so the net income for this year is around $120 millions.
The company have positive assets value of around $250 millions.
Company value calculation:
We will take P/E(ttm) factor as 10-12 so we get a company value of $1.3 billion.
If we divide $1.3 Billions to 700K shares we get $1.87 per share.
Calculation reflect the safe side of fair value without next years
contracts impact, on 2014 the net income will gain to $150 millions.
*** All the data is from NASDAQ data base.
The calculations are per EDIBA rules. Less
Sentiment: Strong Buy
You really are either a blithering idiot, or a complete liar. There was no investment. Money is an investment, not ores as collateral. The ores were not worth anything near what the company said it was. If they were, why would the shares not have been issued at 40 cents, or what they are worth, say 5 cents.
Revenue is not income. Someone else is mining the coal. They will be lucky not to lose too much money on the coal deals. And, it is not all that clear that some of the coal deals are even real.
You can't actually believe that someone, with no money, in fact, can go out and buy a bunch of coal mines at market value, and then make some huge economic windfall. Gee, why didn't I think of that? In fact, the savvy coal operators were the ones SELLING the mines. The idiots are buying them.