Courage Marine   

Courage Marine--- A courageous play

Sorry, Cash position of CM @ 30 Jun 06 should be

USD 29m - 6.15m (purchase of Handymax Vessel) + 2.5m (disposal of  HopeII) - 14m (div payment) + 3.5m (est 2Q opn cashflow...1Q was 3.8m) = USD 14.85m 

 

Bullrun,

Reading the nnouncement of the sale, it would seem that the implied meaningis that the vessel being disposed probably have outlived its economic life....i.e. probably cost too much to repair to get seaworthy certification, higher running from older and less efficient power train etc.

Also, since the scrap price was attractive, and they can make USD1m from the sale, mgmt decided it was the most prudent thing to do.

 As of 31 Mar 06, CM had USD29m cash. With the sale of this vessel, @US2.5m, CM will have USD31.5+m cash. plus whatever retaind profits/cashflow since end of 1Q.

Their last purchase of a Handymax vessel cost them USD6.17m. With cash in hand, they have sufficient funds to keep increasing their fleet size, if the market demands warrants it.

Oh yes, BDI is currently 2900+....gone up very strong since about a month ago when it was about 2300+.

 

shplayer, agreed....that seem to be a fair estimate.  It will not have much material impact to CM this year. But how about next year?  CM will need to buy another ship at much higher price to generate the same income for FY07!

Also concern that loading on CM vessels for Q2 and the next few Qs may be be as good as Q1 and hence they decided to dispose off 1 vessel.

 

kingkong,

Yes, strong close today @16.5cts with 240lots.

Bullrun,

Sale of vessel will net in about US 0.1cts/sh. However, we got to net out loss of revenue for this vessel for rest of FY06. Doing a straightline extrapolation, I figure this will work out to be approx the same...i.e.gain from disposal will cancel out loss of income from the disposal.

 

haha really at 16.5c at the and of today....

 

Anyone know how is the sale of this vessel going to affect CM earning for Q3 and beyond?

 

today CM will close at 16.5c again...

 

low vol ! easy to control? 

 

Courage marine disposed off 1 vessel to make a US$1m again!! Expert out there, what do you think? As I mentioned earlier, one of my concern is that CM vessels are old and I'm not sure they can still be around for the next DBI ralli!

 

Total vol, 268lots done. All @ 16cts except 1 trade, 3 lots at 16.5cts at 1705hrs...pretrade close. Someone is trying to fix the closing price.

 

last done at 16.5c again. is this mean CM will going up???

 

NO. 16.5c is the higher, so it will going down to 14c again.

 

it will back to 19c

 

what is going on now? it seem like going up...

 

ya.this is one of the good company. i did follow up since IPO.

 

agree...

 

As mention dunno how many weeks ago, I strongly believe that Courage Marine is a fundamentally good company with an efficient cost structure and highly experienced management team. The fundamentals are clear but the share price does not seems to reflect this point.

Well I always believe good company will always have the last laugh. For all Courage Marine investors, lets enjoy the profits bah.

 

wow back to 16.5c......good..

 

See 16.5c today...near 17c almost.....

 

could be better after world cup.....