With 2 ships without contracts, the Pacific Khamsin contract to expire in 7 months and the new ship (Pacific Zonda available in 4Q 2015 without a contract, this will be half their fleet without a contract. Cash flow will dry up, bankruptcy is a possibility in 2016. The market realizes this and that is the cause of the stock drop.
Trust expires 3-31-2031. After March 31, 2015 there are no hedges in place and with the low oil prices distributions will be cut sharply.
I called the company and that what the company rep, told me. She said they are developing software that might enable it to process embedded chips. Soon most credit card companies will not offer fraud protection if the merchant swipe device does not take embedded chip cards.
Based on average oil prices less transport cost for the 1st quarter, I calculated a distribution of approx 9.1 cents for the quarter after taking expected cost into consideration.