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hope it keeps going up!
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Bought in real life at $1.25. Holding at least until dividend is resumed.
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I BOUGHT THIS PERSONALLY AT $3 AND WILL CONTINUE TO HOLD IT UNTIL AT LEAST $10 AS SHIPPING RECOVERS. A SOLID COMPANY WITH A GOOD DIVIDEND AS WELL
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Increased fleet with income to cover for next 5 years. Expect dividend in 6mos to year and price to increase to over $5 if economy stays as is and steadily improves.
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A true undiscovered gem! Mr.Market has seriously devalued this company at the moment because with their solid balance sheet and long-term charter revenues and caps on operating expenses and a desire to give out dividends in the near future this company should be selling at around $12/share if not more! I purchased with real money and have made some tidy profits already
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From a technical and fundamental standpoint it appears as if GSL will be a sector outperform.
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Cash flows generated are too steady to trade below $3 for long. Long-term charters will remain viable. The only question mark for GSL is what will happen with contracted ship purchases scheduled for delivery in late 2010. Even if GSL breaches the purchase contract, I don't foresee damages in excess of the deposit already paid...certainly not prior to a protracted legal dispute given the (likely) terms of the purchase agreement.<br /><br />Simply put, GSL is too good to be true at today's price of $2.45, even with the restriction on dividend payments. I would set a target price of $4.50 by the end of 2010 and a long-term target of $8 in the next 24 months.
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Steadily improving Revenue and Earnings. P/E < 4. As, or perhaps if, the global economy recovers the shipping sector will also.
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Greatly Undervalued and misunderstood. Shipping Industry is recovering.
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long term fixed charters with rates fixed at attractive levels pre crisis. limited risk as counter party is the biggest share holder. very attractive valuation
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Obviously preparing to fold. Who are these people?
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Not enough space here to outline the current situation.
Dividends are currently suspended, NOT because they can't afford them but because the banks require LTV calculations and in today's market those calculations can't be obtained.
But the company is ridiculously profitable and will be so in the future, with long-term locked-in charter revenues, and caps on operating expenses. There's a positive impetus to pay dividends in the future, as CMA-CGM (major customer as well as major stockholder) has Class B share that can't receive divvies until the class A shares (the rest of us) are paid cumulatively.
In short, this is truly an undiscovered gem of a company. Current price in low $2's is ridiculously low, given the cash flow they are generating and the dividends they can pay once the banks get happy with the loan-to-value calcs.
Fair value: You pick a number, but I have heard $12-13 or more per share, and I don't disagree.
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