All shippers got trashed when the Baltic cratered. As irrational as it is. GSL went along for the ride even though it does not lease on short term rates. Avg. lease is 5 years. does the Harpex give 5 year lease rates?
Any buyer will only get to use a small % of the NOLs each year. It may never get to use some of it depending on when the NOLs expire, and it will discount (DCF) the real annual value of the NOLs in the purchase price. See below. In any event I think CCUR is worth at least $10 a share regardless of the small value of the NOLs
Section 382 Limitation. If a loss corporation experiences an "ownership change," its
ability to use pre-change NOLs, NCLs, net recognized built-in losses and
depreciation deductions attributable to those losses, and other tax benefits will be
subject to the "section 382 limitation." The "section 382 limitation" is generally the
value of the loss corporation multiplied by the "long-term tax-exempt rate" for the
month in which the owrtership change occurs. I.R.C. § 382(b)(1). For ownership
changes occurring in October 2010, the "long-term tax-exempt rate" was 3.98%.
Rev. Rul. 2010-24, 2010-40 I.R.B. 400.
Example 15. Company ~xperiences an ownership change on October 10,2010.
Immediately before the ownership change, the value of Company's outstanding
stock is $100 million. The "section 382 limitation" for each following year is
$3.98 million. .
Baltic Dry Bulk index is up from low of 290 earlier this year to 539. Not quite a double--yet. Meanwhile GSL sits near its lows. Too bad Ian does not care about shareholders.
$500k is a big penalty. Of course these are lenders, not banks, so the "genetics" are different. Still , this is a strong message for ATEC to DO SOMETHING BIG to fix the problem. Selling the company would be the obvious choice.
Oprah said STON is a good play. Solid dividend-no problem.
I would take Oprah's opinion over Cramer--actually I would take anybody's opinion over Cramer. As they say "even a blind squirrel finds a nut sometimes".
Yeah I agree but current mgmt. has this stock trading at bankruptcy levels. Lone Star can only lose $.10 a share. At least they have the same motivation as shareholders. CRDS has been a scam for years. MGMT there has had no clue either. Good for you to be short. I see they sold their "business" for under $2 million. Just a patent troll now.
Agree 100% it is a negative. Buy back shares when you are losing money just increases the loss per share.Use the money to increase market share/reduce costs/hire an investment banker to sell the company.
GSL is lucky they are not a U.S. Company. The lawyers would be all over them. "We will increase the dividend next quarter". "We will eliminate the dividend-now". The lawyers would be laughing with joy. It is apparently ok to lie to shareholders if you are a British company. Ian should be ashamed of himself. But I am sure he is not.
"iconic" is how she describes YHOO. No wonder they have to sell it if the CEO views it this way. I hope they sell soon, so someone can fix the "improvements" they have made to YHOO finance over the past 4 years before I die.