$6.21
0.11 (+1.80%)
StealthGas, Inc. (GASS)
CAPS Rating:
The Company and its wholly owned subsidiaries, owns a fleet of twenty-eight liquefied petroleum gas carriers providing worldwide marine transportation services under long, medium or short-term charters.
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Punished too harshly for dividend suspension.
They have good chartering (esp on their larger ships).
The delay of their 5 new ships shouldn't impact them greatly (they lost no money in fees from the delay)
I think the dividend suspension hurt their price as some of the big institutions who were only in it for the dividend sold out. In the long term GASS is going to being a great play although I think its going to be a test of patience even though the valuation is sick.
Their Market Cap of just over 100 million is less then the cost of the 2 new product tankers they are getting next quarter and for that price you'd also get 35 little LPG tankers that are holding up well with market prices.
I haven't been on here for a while and I need to actually move to my other laptop to use the site because the way I have the "monitor" set up .. I can't see all features. .
but GASS was really great there for a while
and I didn't realize they suspended their divident, sad to say,, that alone will kick them out,, wonder what is really going on.... maybe it is the pirates! i would delay my ships until all that stuff is cleaned up!
GASS suspended their dividend because management didn't feel like the payout was contributing to share value and people were treating it like it wasn't worth the 12-17% yield. Since investors did not seem to appreciate it they decided to suspend it and use the Cash for future opportunities. Will it work? Only time will tell but its recovered most of their losses from the announcement already. All in all I think you have a great entry price and while the dividend made it sweet to wait I think GASS is still a good pick.