$5.96
-0.14 (-2.30%)
Excel Maritime Carriers Ltd (EXM)
CAPS Rating:
The Company is an owner and operator of dry bulk carriers and a provider of worldwide seaborne transportation services for dry bulk cargoes, such as iron ore, coal and grains, as well as bauxite, fertilizers and steel products.
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Killer yield for a company trading at a recession level. Graham formula (using the conservative numbers from 2007) gives me a fair value of $30, for a margin of safety of almost 75%.
Dividend was suspended, but will likely be back. Rich Greek insiders just bought lots of warrants and have been used to EXM shelling out big chunks of the available cash.This is the best dry bulk shipper in the world.
very high debt to equity ratio (even when compared to industry), very poor cash flow and poor return on equity and investments.
no intangibles which is good. however cash flow is negative and while they are priced wayy under book value much of their assets can be seized by their creditors. not to mention the fact that interest rates WILL rise once world inflation kicks in and their loans will suffer. also a recent decrease in the BDI (baltic dry index) has hurt the value of their ships. this will hurt their ability to find attract new loans.
this company is no cigar butt.
if you are looking for something in the shipping industry check out SBLK (starbulk carriers).
Those rich Greek insiders, that was the CEO and family. And they only paid $1.75 per share, when the price to shareholders was $6. So either the CEO is stealing from the shareholders, or $1.75 is a fair representation of the value of this stock.
EXM, DRYS and a few other bulkers paid too much to expand, when the prices for ships were high, and now they have tremendous amounts of debt, and not nearly the revenue to pay for it. Any loan covenant waivers they negotiated will come at a cost, usually higher interest, and kicking the debt down the road.
Someone will be the best shipper in the world, but not EXM. It will be one with no debt and cash to purchase ships at bargain prices.