Audio.......Looks like volatility will give shareholders a roller coaster ride through the dilution process. I have been pretty good at picking bottoms but reluctant to sell in over bought territory. Long term I have more confidence in VLCCF than any other dry bulkers and will consider buying the dips as a cherry picking opportunity.
I also have confidence in NM and SB but see more growth opportunity in VLCCF.
I appreciate your input and knowledge in the shipping segment.
Forecasts for a strengthening of the BDI in 2014 by shippers and analysts is either delayed or wrong but so far there has not been a huge sell off. Banks are again starting to loan to shippers and hedge funds are buying those on the ropes.
We will have interesting times ahead.
It is tough forecasting future shipping rates. I like the way tankers are heading which is premature according to past forecasts.
I also own a lot of dry bulkers who were forecast for great things this year. The dry bulk index is sucking the bottom and again analysts were wrong.
I believe that the whole shipping sector will return to profitable levels but will suffer great swings before all is said and done.
My strategy is to buy strong companies when they swing south and hold through the storm.
So far so good........
Yes..... It I's dilutive but not necessarily bad. Good if the proceeds are used to grow the company with income producing assets but bad if used for nonproductive purposes.
The bottom line is the same for any business. After expenses and taxes, how much money is left for the owners.
VLCCF with very low debt is already a leader in the sector and as shipping rates rise will be productive for owners.
The new build order book is a gamble by management betting that there will be sustainable income to pay for new assets.
We shall see.........
BALT also had big volume trading twice last year around the time they announced equity offerings. Don't be surprised to see another equity offering.
BALT management has been on the ropes the last several years and lost control of both Genmar and Genco to "vulture" venture hedge funds.
BALT is their last chance and it is imperative that they keep their noses clean and assets out of reach of creditors. Current low debt ratios are their sparkling diamond and the reason I am still holding.
I am not a real fan of Peter and company but just hope they have learned from past mistakes.
BALT was created as a safeguard when management saw the handwriting on the wall concerning high debt levels of Genmar and Genco.
Time for Peter G.to give up the Donald Trump wannabe attitude and start rowing.
It is no secret that FRO needs cash and selling shares and dilution is the easiest way to do so. FRO has been hit hard through this cycle due to low rates and high debt. Borrowing will only prolong the recovery but selling shares may be the least painful way to keep the ship afloat. The selling appears to be done for now so we may see some gains until next time..... if so.
I trust FRO management will use their experience to get us the best result and the quickest recovery.
FRO has suffered more than their peers because they do not have the diversity of other income within the company. When rates do become profitable, I expect that FRO will experience a larger gain than other tankers because of their dependence on shipping rates rather than other income. It is a two way street.
Press release from Frontline Ltd. 01.07.2014
Reference is made to the announcement by Frontline Ltd. ("Frontline" or the "Company") of the Company's entry into an at the market equity distribution program on June 6, 2013.
Frontline has issued 1,229,922 ordinary shares under that program during the month of June 2014. Following such issuance, Frontline has an issued share capital of USD 98,206,287 divided into 98,206,287 ordinary shares.
June 30, 2014
The Board of Directors
Questions should be directed to:
Jens Martin Jensen: Chief Executive Officer, Frontline Management AS
+47 23 11 40 00
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 00
FRO has suffered a more dramatic drop in PPS than its peers due to the high load of debt. If rates improve to provide profitability and debt management, FRO should experience a greater gain than its peers.
FRO has another year before debt matures and I am buying FRO on weakness betting that rates will reach profitable levels. I believe the break even point is $25,000 per day for VLCC ships.
John Fredriksen is a wheeler and dealer. He works hard to protect his assets through spin offs and FRO has been hit hardest of all his holdings. FRO has a long list of newbuilds on track and the contracts alone are worth $$$$$ as they were ordered at rock bottom prices. I don't think Fedriksen has abandoned FRO although long holders that have see their portfolio crash would disagee.
I do believe he has long term plans that will benefit buyers at todays prces but those that have lost a lot will be seeing red for a long time.
This from a year ago.......
John Fredriksen Sees Crude-Tanker Market Recovery Two Years Away
By Rob Sheridan Jun 6, 2013 3:40 AM PT
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John Fredriksen, the world’s wealthiest shipping investor, anticipates no recovery in crude-tanker markets for at least two more years, a senior executive at one of his companies said.
Markets for transporting refined fuels and dry-bulk commodities have better prospects than crude carriers, Fredriksen said in an interview with Reuters yesterday. Jens Martin Jensen, chief executive officer of Frontline Management AS, a company that operates the billionaire’s tankers, confirmed the remarks by e-mail today.
Owners of the vessels are contending with an oversupply that’s driven rates this year for the largest ships to the lowest since at least 1997, according to data from Clarkson Plc (CKN), the world’s largest shipbroker. Frontline Ltd. (FRO), one of Fredriksen’s tanker companies, said it may need to raise cash to repay a convertible bond due in April 2015 if crude oil shipping markets don’t recover in the short term.
Prospects for oil-rig rates for the next three to five years are also better, Fredriksen said. Seadrill Ltd. (SDRL), in which he’s the largest shareholder, is the biggest offshore drilling company by market value.
Maybe not if Fredriksen is planning to buy a chunk of those shares on the cheap. It would give we little guys the opportunity to buy shares at the same price. I don't think Fredriksen is going to let FRO falter into BK, but has the foresight to weather the storm. He has other resources and can keep FRO afloat through many avenues.
If dilution causes a substantial decrease in PPS I will be buying.
The shipping sector is still subject to the oversupply of ships but one day that will balance and those buying now will be rewarded.
The trick today is to stay away from companies that are subject to BK and venture fund takeovers.
Nobody will take over FRO and Fredriksens financial stability will provide the resources necessary for survival.
Pfizer buy PVCT?
If they wanted PVCT they would have made a move years ago. Now that PVCT has been exposed as a penny stock selling scheme and any association would be toxic.
PVCT is in the process of a dead cat bounce and anybody with two cents worth of brains will run like the wind.
Shell shocked PR guys are back at work with new and exciting promises of stage three development and hints of possible back door revenue schemes.
Let's sell our unproven line of products in India and China where rules are lax and life is cheap.
PVCT may now be temporarily listed on the NYSE but still has a penny stock mentality.
Your post is right on......
They probably wish they could just divvy up the remaining cash and go home.
They dug a hole and now have fallen in...... no ladder.
This is the result of turning the reign over to a PR company that will walk away with cash and leave the resulting mess to management.
Management had a good thing going for ten years but just couldn't get the results they hoped for. Too bad for investors that were caught up in the PR hype.
People were buying cheap at $3, then $2 and now at 56 cents.
Can't wait for next weeks cheap buys.
Kinda like playing limbo.....
How cheap can we go.
The reason The Waterlase is not selling is not because of lack of advertising or exposure.
It is not selling because it is expensive, inefficient and cannot compete with current methods used in dentistry.
It is simply a advertising gimmick to draw in fearful patients with claims of painless dentistry.
This is a dead horse that hopeful shareholders keep beating.
You are encouraging already beaten investors to ignore red flags and stick their heads in the sand. I bought this dog without proper DD on a whim due to the up listing on the NYSE and quickly hit the sell button when I realized where this was going. I took a 30% haircut at what in hindsight proved to be the right move.
Management has proven themselves to be complicit in the stock selling scheme and I believe that they will eventually find themselves so mired in legal issues that the company will evaporate and become another zombie stock.
Your encouraging words to disillusioned shareholders should be enough to put you in handcuffs along side the hoodlums spewing false PR.
I did the same thing with what appeared to be a viable company a few years ago. The pps gradually fell although the company was still issuing positive PR. The company is now gone and the stock is still listed as a penny stock. It is a zombie stock and lives on after death. I still have 5 million shares worth $34....... on paper. Cannot sell it as there are no buyers.
It is a good reminder in my portfolio that I need to know when to hold'em and when to fold'em when gambling.
John Fredricksen is a master juggler and FRO is his only holding in trouble. Fortunately for FRO, Fredricksen also holds the purse strings of FRO financing and I doubt he will let his pride and joy fall apart. He has the resources to see FRO through troubled waters and is preparing for a rebound...... whenever that may be.
Competitors are failing and when the sector is thinned a bit more look for a FRO to be a leader.
Chances of product development are diminishing daily as class action lawsuits are going to eat away at the 19 million cash reserve. The air has gone out of this balloon and all the huffing and puffing by those left holding the bag will not repair the damage.
Even if FDA compliance is possible the damage is too great for current management to overcome.
I feel sorry for those who initially bought the PVCT story but those who continue to pump in light of recent revelations are just plain wrong deceptive or stupid.