CPLP is also tied to Hyundai Merchant Marine
BUZZ-Capital Product Partners: Biggest intraday pct loss in 7-1/2 yrs
11:40 AM ET, 04/26/2016 - Reuters
** Greece-based drybulk shipper's stock down 24 pct at $2.93
** Shares fall as much as 37 pct, biggest intraday pct loss in 7-1/2 yrs
** Company reports Q1 EPS of 8 cents vs the average analyst estimate of 10 cents
** Company's quarterly revenue of $58 mln falls short of estimate $60.5 mln
** Company says one of its largest charterers by revenue, Hyundai Merchant Marine Ltd, engaged in a restructuring process
** If restructuring is completed, it could result in substantial loss for partnership, says Capital Product
** Up to Monday's close, shares had fallen 60 pct in 12 months
What!!! They are only down 120% since yesterday. Their short account has already gone negative.
Sentiment: Strong Buy
I see no reason to celebrate as they just lost $500 million by buying ships (Capes) the past 1.5 years then selling them at a loss. Not to mention the fact that the day-rates are horrible. So they will have losses going forward as far as the eye can see.
Today's low now marks the lowest price in history for RIG dating back to their start of trading. By my calculations the current price translates to roughly 5796.50/share when you factor in all the stock splits. So get in while the gettin' is good.
I've turned bullish on SALT now that the BDI is starting to move up again. One reason to never trust analysts. Case-in-point, this was published by Credit Suisse July 28, 2015 :
Scorpio Bulkers Inc. (SALT)
The Worst Looks to Be Over
■ Increasing Estimates. We are increasing our 2015/2016 EPS estimates to -
$0.29/-$0.24 (from -$0.44/-$0.33) due primarily to SALT's higher share
count (up ~153M following the equity offering last month) and also a smaller
fleet (less losses). We are above 2015/2016 consensus of -$0.36/-$0.27.
■ Getting Aggressive. Following the sale of 20 newbuilds (lowered CAPEX
by ~$670M), a ~$220M equity raise, and securing potential newbuild
financing of $850M, SALT appears to have made it through the storm.
■ CAPEX Looks Manageable. SALT has ~$1B in CAPEX due through 2016
remaining on its 48 newbuilds. Management noted at current ship values the
secured commitments point to $800M in available credit. Add in the ~$220M
from the equity issuance and four remaining unfinanced newbuilds (financing
should be in place by Q4) and SALTs growth program looks funded.
■ Bouncing Along the Bottom. Following one of the worst half-year periods
ever in drybulk (the BDI averaged just 623 in 1H15 versus 1,090 today) - the
worst of pricing looks to be behind us. We note we expect drybulk rates to
remain well below mid-cycle levels in the near term. The market is cyclical
and the market troubles of 1H15 has driven 21M DWT of scrapping which is
on pace to eclipse the record scrapping of 2012 (33M DWT). We expect
scrapping to continue as long as rates don't move too high too fast.
■ Earnings. SALT reported an adjusted Q2 EPS loss of $0.09, ahead of the
street at -$0.11 (CS -$0.10). Net revenue was $16M (CS $13M, Consensus
$16M) which was up 4% Q-Q primarily due new vessel deliveries offset by
fewer revenue days from tonnage chartered in (loss-making in this
environment). EBITDA was -$14M (Consensus -$12M, CS -$13M).
Nope, they are down to $0.153 cents now pre-split.
I used to own this POS too at one time.