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Box Ships Inc. Message Board

vgacolor1 2 posts  |  Last Activity: Jul 16, 2014 2:21 AM Member since: Feb 19, 1998
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  • Reply to

    Why Shorting USU is so profitable.

    by freespeech73 Jul 14, 2014 9:29 AM
    vgacolor1 vgacolor1 Jul 16, 2014 2:21 AM Flag

    You are partly right. However, there are a couple of assumptions such as the one that the amount of new bonds and amount of stock is supposed to make existing bondholders whole. That would be incorrect. Bondholders know that they are getting a haircut and they know it.

    The value of the equity will depend on how quickly the company can get either the DOE guarantee or under what terms the company can get into an agreement like selling its investment and getting a long term contract as manager in the project. This can not happen while the company is still under BK, and doing it before when the company's performance was weak was not considered a good idea.

    I think that there is value in the company but the bonds are a better place to be if you want to take a chance. I own a few thousand and should get about 4k shares after the exchange. I only regret not doubling my position when the bonds dropped under 20 cents.

    Sentiment: Sell

  • Reply to

    Current Debt on Balance Sheet

    by kingkobexx Jun 12, 2014 6:54 PM
    vgacolor1 vgacolor1 Jun 14, 2014 9:55 PM Flag

    This information is either an honest mistake or a ruse to bash this stock.

    The debt repayments due are as follows.

    2014- $22.7MM
    2015- $31.45MM
    2016- $17.7MM
    2017- $97.45MM
    2018- $10.25MM

    As I have mentioned in my prior posts, the company has enough money to finish the year and probably make it to May/June of next year when another two vessels come off charter. If there has not been an increase in charter rates then it will be time to do something drastic.

    Too much risk for my taste. I will keep an eye to see if the fundamentals of the industry change. Right now the value of those vessels are below the associated debt so there is nothing for stockholders in the case of liquidation.

    Sentiment: Strong Sell

TEU
1.32-0.08(-5.71%)Aug 22 4:02 PMEDT

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