I posted a while back (when this company was trading for a dollar a share) indicating what a great value ESEA was. I am a value investor. I wanted to invest in the bottom of the shipping market cycle and I wanted to pay less than market value for the ships. One of the reasons I recommend ESEA was the fleet age, I argued that older ships would increase in value more than newer ships when the market turned and that is exactly what happened.. Lets look at what ESEA is worth today.
3 Panamax drybulker (18 years old)- 8 million each = 24 million
1 Handymax Drybulker (15 years old)-8 million
10 Container Ships (19 years old)-6 million each= 60 million
Investment in Euromar Joint venture (newer containerships)= 15 million
Assets: $130 million
Long term debt: 36 million
Current book value- 94 million
Company currently selling for just 64 million.
Lots of upside just to hit asset value.
What I like about ESEA:
1. low debt
2. good DIV
3. balance between Container and Drybulk
4. lots of insider ownership