I see no reason not to increase the dividend. My calculation for 2016 , is surplus cash of over $30m, after paying interest, dividends, and the $7.7m debt installment. This calculation takes into account the loss of revenue of the 2 ships scrapped and the new one purchased. GSL is my largest value holding.
Raul, I to am underwater by 25%. I still regard USAC as a hold, due to fairly secure div. Even if CHK, go for chapter 11, oil will still flow through the pipelines , and there should be little effect on USAC's income .I am not sure of their exposure to CHK but will check.
GSL is in the container business, which is under pressure. Best to get the debt ratios right, for the future. BTW, common yield will be 27%, when new div of 50c p.a. is announced with earnings in the first week of March.
Play, can you give a reference to the charter rate? I have not seen a figure given to the charter rate.
I believe managements statement of "once and done". This exercise is to tidy up the balance sheet and may involve the issue of pref shares, and the div will most probably be reintroduced later this year at a lower rate.
I lost money on this share last year , but have started a new position this week.
As I posted previously, the $28m is made up of 2x $14m , which is the scrap proceeds from the sale of the 2 ships. As they reported , the scrap proceeds would be accounted for in Q4. After analysing their accounts and projecting 2016 cash flow I purchased 31000 shares. If you are interested you can look up my posts on this subject.
I have stated a position @ the $1.50 level. I happen to believe the once and done statement , as the company is cash flow positive, and not over indebted compared to most midstream companies. ( LT debt/Equity .7). Will buy more as the dust settles .
clro, I did a detailed analysis of 2016 earnings. To summarize , Div cover 2.1X ( at a $0.50 div), interest cover 2.33X. This takes account of the scrapping and purchase of ships at the end of Q3. Free cash after div ( both common and preferred) and interest, is $22m.
Info is available ( from Q3 report) , and you can do the forecast for yourself.
Have purchased over 20k shares over the last 4 days, and expect to see recognition of improved financial condition when results are released. ( first week of March if last year timing is duplicated).