Thanks for the update surfgeezer. The Capesize and Panamax market charter rates have relatively lower volatility than does the Handymax vessels the past few months. Does anyone know why this is? Maybe this is just an anomaly with the data I have.
I have a correction to make on the second table. The dwt 2011 figure for SB should be 1,886,400... implying no change in dwt between 12/31/2011 and the 6-k information supplied 5/8/2012. I apologize for the error and I'll inform the SA editors. It doesn't change any of the rankings.
@V Investor, check the charter rates for DSX in 2012. The last two charter rates reported by DSX were just this last month... $13k gross/day for a Handymax and $9.7k gross/day for a Panamax. There is a 5% commission expense on these. Also, when comparing the OI, I think NMM incorporates interest as an operating expense so the operating expenses are not as apples to apples as one would like.
I wanted to limit the analysis to historical data and avoid speculating about the future. So I focused on the assets. I do agree that the timing of the contracts matters. Hopefully, the work here will supplement your own research.
There seems to be a flurry of ACTS pieces on SA recently. Your article is the most relevant. There is no need to try and convince investors to buy, like the two preceding articles intended to do. There is a need to convince management to allocate the cash and cash equivalents optimally. Cash and cash equivalents represent a little over 70% of total assets. Half of this balance could be used to buy back shares at these ridiculously low prices while still leaving enough to cover nearly all operating costs for the next year, assuming the revenue and costs remain identical with last year as a percent of assets.
A Safe And Lucrative Value Arbitration On Cutting-Edge Technologies [View article]
I like the review of the management team, this is essential to know for investing in China and one I spend time on. While accolades by the provincial government are nice, one has to worry about rent seeking activities enabled by guanxi, and the provincial bureaucrats meddling with ACTS's executive team should give any investor caution in my opinion. Still, the executive team's education in Taiwan and the US suggests to me that they should understand western investors better than the typical small cap in China that has had little to no exposure to culture outside of China. I have been accumulating at these levels, but I would like to see them decide to employ capital outside of China. There are cheaper places to manufacture than China, and we now know China offers no protection of property rights for US investors in the manner we would like, so geo-political diversification of their asset base would reduce the risks that appear so specific to China right now. That China-specific risk is not going away without some sort of revolution in ideological thought within the PRC, which may not happen for a very, very long time.
Troubled timber firm Sino-Forest will file for bankruptcy protection today, according to sources. The company had a market cap of $6B less than a year ago, before a June report from Carson Block outed fraudulent practices there. [View news story]
So, let me get this straight... they are suing the group that outed them as frauds because they alerted the public to their fraud?
China Sky One Medical: How Can Anyone Doubt Its Integrity, Growth and Valuation? [View article]
This is rather rich following the exodus of middle management along with the halt. I despise frauds and I hope you can recover what you have lost by trusting this company's executives. There were too many problems for this company to ever have fit into my set of potential investments, regardless of Waldo Mushman's research.
Manhattan Bridge Capital: Are Board Members Looking Out For Shareholders? [View article]
I think you are probably correct on the design of these restricted shares being influenced by the stronger possibility of a buyout with the company selling below its net current assets.
Adams Golf: An Open Letter To The Board [View article]
Jay, I am really happy you wrote this and posted it on SA. The growth rate in O/S over the 2003-2007 years is 2.47%. The growth rate since 2007 has been 7.10%.
The growth rate in O/S has nearly tripled. The income growth rate has been far too low to sustain the 7%+ growth rate in outstanding common. Earnings in 2007 - $9.4m, earnings in 2010 - $5.0m for a negative 18.73% growth rate in earnings. Granted, the golfing industry has contracted since 2007, but that only reinforces the problem with a triple in the growth rate of the common. Retained earnings over the 2007-2010 period have destroyed equity with a growth in accumulated deficits over this period at 7.26%
I'm not bashing ADGF, seeing as I am long this stock. I'm just expressing my dissatisfaction with the gifting of the shares. It is unjustifiable.
My Portfolio Plan Following A Horrible Year [View article]
It is always interesting to review someone else's portfolio and reasoning behind its creation. Needless to say, your approach is going to be subject to extreme volatility. I've dealt with the emotions of panic under periods of accelerating losses and like you, gone back to the books and more research before giving in to the urge to 'do something' before determining whether something tangible has changed that should cause me to change my underlying thesis. I hope your concentrations pay off.
The banking industry doesn’t get much analyst love these days, but Dick Bove remains a stalwart - and increasingly angry - defender of financial institutions, a role that has placed him at odds with some people in high places: "People like Pres. Obama are harping on about Wall Street. They are inciting people to riot. And they will.” [View news story]
Just an observation on my part... The leaders of the left have recently been the most economically illiterate the past 11 years and this is nothing more than a reflection of the constituency. I agree with Bove, but this is bigger than just Obama. The 'demonizing' of the financial industry has been running with few checks of sound reasoning during this period of time and has been supported by mainstream media outlets like CNN and MSNBC. Frustrated people are looking for someone to blame. Combine this with widespread ignorance of economic principles and you see Occupy Wall Streeters tweeting about the elimination of private property rights and other ideas that would accelerate the demise of any remaining freedom we have as we continue or collective travels on the road to serfdom.
Chinese VIE Investments Warrant A Change [View article]
Thanks for the feedback. From the perspective of the parent company, a wholly owned foreign entity sounds more natural to me and that is why I wound up using the WOFE acronym. But, I have read the wholly foreign owned enterprise/entity phrase and seen the WFOE acronym as well. A WFOE sounds more appropriate from the PRC perspective to me. But, if the WFOE is a more conventional acronym I'll have to start using it. I certainly don't want any unnecessary confusion.
Chinese VIE Investments Warrant A Change [View article]
I am discussing CVIE investment valuations. These issues affect other valuation methods investors use. A CVIE involves no equity ownership. The ADR owns a set of contracts entitling it to cash flows and residual profits. Lower profit due to moral hazard yields lower operating cash flow. Greater uncertainty concerning enforcement leads to a higher risk premium, i.e. a higher discount rate for DCF methods or a lower P/CF and lower P/E threshholds. Liquidation values involve enforcement uncertainty of the contracts and can also be affected by moral hazard. Accounts receivables may be inflated, equipment may be inflated in value on the books due to related parties transactions, etc.
Drybulk Shipping: Normalizing Proportional Risk To Determine Asset Quality [View article]
Drybulk Shipping: Normalizing Proportional Risk To Determine Asset Quality [View article]
@V Investor, check the charter rates for DSX in 2012. The last two charter rates reported by DSX were just this last month... $13k gross/day for a Handymax and $9.7k gross/day for a Panamax. There is a 5% commission expense on these. Also, when comparing the OI, I think NMM incorporates interest as an operating expense so the operating expenses are not as apples to apples as one would like.
Drybulk Shipping: Normalizing Proportional Risk To Determine Asset Quality [View article]
Actions Speaks Louder Than Words [View article]
A Safe And Lucrative Value Arbitration On Cutting-Edge Technologies [View article]
Troubled timber firm Sino-Forest will file for bankruptcy protection today, according to sources. The company had a market cap of $6B less than a year ago, before a June report from Carson Block outed fraudulent practices there. [View news story]
Amazing. Absolutely amazing. Only in China.
Advice From Walter Schloss [View article]
China Sky One Medical: How Can Anyone Doubt Its Integrity, Growth and Valuation? [View article]
Manhattan Bridge Capital: Are Board Members Looking Out For Shareholders? [View article]
Adams Golf: An Open Letter To The Board [View article]
The growth rate in O/S has nearly tripled. The income growth rate has been far too low to sustain the 7%+ growth rate in outstanding common. Earnings in 2007 - $9.4m, earnings in 2010 - $5.0m for a negative 18.73% growth rate in earnings. Granted, the golfing industry has contracted since 2007, but that only reinforces the problem with a triple in the growth rate of the common. Retained earnings over the 2007-2010 period have destroyed equity with a growth in accumulated deficits over this period at 7.26%
I'm not bashing ADGF, seeing as I am long this stock. I'm just expressing my dissatisfaction with the gifting of the shares. It is unjustifiable.
My Portfolio Plan Following A Horrible Year [View article]
The banking industry doesn’t get much analyst love these days, but Dick Bove remains a stalwart - and increasingly angry - defender of financial institutions, a role that has placed him at odds with some people in high places: "People like Pres. Obama are harping on about Wall Street. They are inciting people to riot. And they will.” [View news story]
Chinese VIE Investments Warrant A Change [View article]
Chinese VIE Investments Warrant A Change [View article]
Chinese VIE Investments Warrant A Change [View article]