8.50 might just be a good cover point from your short at 3.50. You can now lock in your 142% loss now, congrats dwt tard.
Why invest a $1 in CBL? How about value? $1 in CBL buys you 12.2 cents of yearly FFO. 1$ in GGP buys you 5.6 cents of yearly FFO. $1 in TCO buys you 5.2 cents of yearly FFO. You can go ahead and pay up for the "Best in Breed" while I just keep making cash.
CBL = 5.8% yield
GGP = 2.9%
TCO = 3.1%
Actually I consider the management to be above average. Their job is to keep the ships employed and keep the cost of capital down. They have done that. I think the latest debt offer bumble is more of a posturing move than lack of execution. We really dont "need" this debt at 9%-10% and its actually too costly anyway. By the end of 2014 we will have ~300 million of long term debt and prob net debt around 260 (debt - cash). We will be in compliance by then anyway and wont need the high yield debt.
I think its dangerous for shorts to speculate on the short side here with 6.5 avg years left on the contracts. The market could be drastically different in 1 or 2 years much less 6 - 10 years out. To say that the ships would be worthless after the charters expire is laughable. Don't you think the likes of SSW and CMRE would be trading at such high pe multiples if that was the case? CMRE has tons of ships coming off charters from 2014-2018 and is higher leveraged than GSL. Obviously some investors believe there is a profitable future in container shipping.
I love how they try to spin the jcp and sears story. yeah they will lose some stores butt they will get better rates with the new tenet and the 4 jcp stores amounted to about 1.4 milloion of annual rev which is insignificant really. amazing how cbl trades at 7.6 x trailing ffo while tco and simon are around 18X+.
I have to mention GNW. Improved earnings and 25 BV trading around 15 now. Im trying to get in around 14.50 though.
I think you were close. I would say nat gas = 13 mill and oil = 7 mill for 20 mil approx. well see.
Thats kinda why they are doing this, more financial flexibility and no required amortization of debt. They should declare a divy within a qtr if they close this new debt.