Another Containership Stock, Containing Possible Treasure
This is a spin off container ship company from PRGN, and the IPO was in mid-April.
They currently have 7 ships, all under term charters running from August of 2012, to 2016. There are 3-2010 builds, 2-2007 builds, 1-2006 build, and 1-2004 build, so the fleet is on the average only 3.6 yrs old. One of these ships was purchased in August, after the Q2 results, and they plan to continue adding to the fleet as opportunities arise.
The average daily rate is $23,828, and the average daily cost to operate (including G & A ) is $8,333.
For the shortened Q2 ending June 30, 2011, they had revenue of $7.2M, and income of $2.3M, for an average of $0.16 per share on a weighted average of approx. 14M shares. Their EBITDA for this period was $4.6M.
They bought 2 of the ships from PRGN for cash and stock. It might be worth taking a look at the end of the third quarter to see what this does for PRGN's bottom line, since they received $0.5M in dividends for the shares they received, and if the $0.30 expected for Q3 holds up, PRGN should see about $4M a year from TEU.
They paid a dividend of $0.15 per share for Q2, and expect to pay $0.30 for Q3.
It is their intention to pay out 100% of available cash each quarter. The same people who run PRGN run this company, and since they receive good dividends, they have an incentive to keep the "cow giving milk".
Their "rough" balance sheet at the end of Q2, shows assets of $346M, of which $11M was in cash, and $321M in ships. They showed LTD of $149M, and equity of $178M, or a little over $12 per share of book value.
When they finish up Q3, there should be a rise in the stock price, because at today's price ( $7.70 ) , they would be yielding about 14%, if they pay out $0.30 per share.
This one is similar to DCIX, but the balance sheet, while strong, is not as strong as for DCIX.
I think both of these are good longer term investments. Do your own DD by going to their web site, and for a good write up on TEU, you might want to look at the Seeking Alpha article.
I think Seeking Alpha overlooked how strong DCIX will be going forward, but we are each entitled to our own opinions.
JMO and worth exactly what I am charging for it.
If you see any "bloopers", please feel free to point them out.
I am long on both DCIX and TEU.