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  • DHT Still A Contender In The Tanker Industry [View article]
    Still following not sure why after reverse split, just think it can make it.

    EBITDA for the 4th quarter of $9.8 million and net income for the quarter of $1.7 million ($0.11 per share) after adjusting for non-cash impairment charge of $8 million. Net cash provided by operating activities for the quarter was $3.4 million.

    The Company will pay a dividend of $0.02 per common share and $0.28 per preferred share for the quarter payable on February 19, 2013 for shareholders of record as of February 11, 2013.
    Jan 29 05:37 PM | Likes Like |Link to Comment
  • DHT Holdings: Afloat After Its Q3 Earnings Release, But For How Long? [View article]
    EBITDA for the 4th quarter of $9.8 million and net income for the quarter of $1.7 million ($0.11 per share) after adjusting for non-cash impairment charge of $8 million. Net cash provided by operating activities for the quarter was $3.4 million.

    The Company will pay a dividend of $0.02 per common share and $0.28 per preferred share for the quarter payable on February 19, 2013 for shareholders of record as of February 11, 2013.
    Jan 29 05:33 PM | Likes Like |Link to Comment
  • 4-Year Market Cycle Update [View article]
    All markets have patterns and cycles.

    Borrowed article from NY TIMES: Similar Cycles for Stocks
    The total return, after inflation, of stocks over 15-year periods seems to be repeating the pattern it mapped out decades ago. The compound annual total real return of the Standard & Poor’s 500-stock index peaked at more than 15 percent in 1999, and has since fallen to just 3 percent. That peak was similar to the earlier peak, reached in 1964. After that 1964 peak, the stock market lost momentum and then entered a bear market. By 1979, the market had failed to keep up with inflation over the previous 15 years.

    CHART:
    http://bit.ly/10hnJOb
    Jan 17 01:03 PM | Likes Like |Link to Comment
  • Probably not great news for global trade, the Baltic Dry Index plunges 8.2% to 826 this morning, the biggest drop since 2008. Shippers already struggling to hang on include: EGLE, ESEA, DAC, DHT, TNP[View news story]
    DHT does not ship dry goods not sure why its linked? Although there are issues in the market with OSG, excess ships etc...
    Dec 12 10:21 AM | Likes Like |Link to Comment
  • 5 Stocks To Buy Well Positioned To Rally In 2013 [View article]
    Citigroup on Wednesday announced plans to cut 11,000 jobs and close branches in a restructuring effort that will result in a fourth-quarter charge of about $1.1 billion.
    Dec 5 01:27 PM | 1 Like Like |Link to Comment
  • DHT Holdings: Afloat After Its Q3 Earnings Release, But For How Long? [View article]
    In general, preferreds have preference to dividends payments. A preference does not assure the payment of dividends, but the company must pay the stated dividend rate before paying dividends on common stock. BLUF: Yes they can reduce and even stop(pass) it and pay later. Also, see if the Convertible factor applies to you mentioned below.

    Dividend payments on preferred shares ("preference shares" in the UK) are set out in the prospectus. The name of the preferred share will typically include its yield at par: for example, a 6% preferred share. However, the dividend may under some circumstances be passed or reduced.

    The benefits of preferred stock include:

    •High dividend yield - usually higher than common stock dividends and bond yields of comparable risk.

    •Receive dividends ahead of common stock holders so preferreds have a better chance of receiving dividends if the company experiences financial problems.

    •Price is much less volatile than the price of common stock.


    The drawbacks of preferred stock include:

    •Limited upside price appreciation. Preferreds do not track the price of the common stock one for one so owners of preferreds can miss out on a large price upside.

    •Price varies inversely with interest rates. So the price of a preferred can be less than the price you paid.

    •No maturity date like a bond so you are not guaranteed to recover your principal at a given date.

    •Some preferreds can be redeemed (called) by the issuer if interest rates fall so your income flow from the preferred stock would stop.

    Preferred stocks have some features like a stock and others like a bond. Here is list of important features to look for in a preferred stock:

    •Cumulative, pays all past due accumulated dividends if dividends were stopped for a period and then resumed. But preferred dividends are paid after bond payments.

    •Noncumulative, does not pay all past due accumulated dividends if dividends were stopped.

    •Callable, issuer may require you to redeem the preferred stock at a given price - usually if interest rates drop.

    •Not callable, issuer will not redeem the preferred stock.

    •Convertible, is exchangeable for a given number of common stocks on a given date. Holders may be forced to convert share to common stock. The price of a convertible preferred is more volatile than the price of a non convertible

    ***(DHT issued Convertible in its stock offering mentioned above in its backstopped-equity offering - June 2013) See the conversion info above.

    •Non convert able, is not exchangeable for a given number of common stocks.
    Dec 4 10:10 AM | Likes Like |Link to Comment
  • Ares Capital: Long-Term Value With A High Dividend [View article]
    Forbes had two articles on ARCC and its dividend channel had these remarks on 14 November. So what are the issues? Pending tax laws that may hurt BDCs and dividend producing stocks?

    Ares Capital Corporation (NASD: ARCC) presently has a stellar rank, in the top 10% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors.

    Looking back to 89 days ago, Ares Capital Corporation (NASD: http://bit.ly/MH3fTK) priced a 22,500,000 share secondary stock offering at $16.55 per share. Buyers in that offering made a considerable investment into the company, expecting that their investment would go up over the course of time. In trading on Wednesday, bargain hunters could buy shares of ARCC and achieve a cost basis even cheaper than those buyers, with shares changing hands as low as $16.54 per share. It should be noted that investors at the secondary have collected $0.43/share in dividends since the time of their purchase, so they are currently up 2.5% on their purchase from a total return basis.

    The current annualized dividend paid by Ares Capital Corporation is $1.52/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 12/12/2012. Above is a long-term dividend history chart for ARCC, which can be of good help in judging whether the most recent dividend with approx. 9.1% annualized yield is likely to continue.
    Nov 17 01:19 PM | Likes Like |Link to Comment
  • Ares Capital: Long-Term Value With A High Dividend [View article]
    Thanks for the comment.

    Interesting Stock, not for the average investor - some can say the same for BDCs.

    Confused on your goal with preferred shares. I have a couple but plan on converting to common shares later. In the beginning I was getting a better dividend but now it comes out to almost the same if I do the conversion into common shares and what that dividend will equal. Some preferreds you cannot convert. Also, most preferred shares follow the rules below.

    Good luck to you and I'll put it on my watch list just to see what happens.

    Corporations issue preferred stocks to raise cash. Although you buy or sell them the same way you trade regular stocks, preferreds are more like bonds than common stocks. Investors buy them for the steady dividends, which typically equate to 4% to 8% yields. Most preferreds pay dividends quarterly.

    Unlike common stocks, you’re won’t enjoy much share price appreciation if your company comes up with a hot product. Further, in most cases, the dividend usually does not go up either.

    The term “preferred” means that a firm must pay the dividends due on its preferred shares before it pays any common stock dividends. Also, in theory, if a company goes bankrupt, preferred holders have priority over common stock shareholders. However, when a company fails, both common and preferred shareholders usually get nothing.

    Take Care
    Nov 7 07:40 AM | Likes Like |Link to Comment
  • Ares Capital: Long-Term Value With A High Dividend [View article]
    I agree with 1caflash, read the earnings report and you will find they are being a little more conservative in the current market and not chasing the yield spread as much. Which could mean less earnings but I think the dividend is safe.

    From Report:
    "I think it just means, as we've said in the past, you can't stretch for yield, and you have to be more focused than ever on credit quality and the quality of the underlying businesses that you're underwriting."

    It is getting harder to have a great spread without taking on more risk. The spread simplified is how much they have to pay on debt as opposed to what they charge for loaning money. That spread has decreased some. Makes it harder to earn the bigger buck but you take on less risk which I think makes ARCC a safer bet than many BCDs out there.

    They may have to do another carryover from 2012, which could equate to another special dividend next year.

    Penni F. Roll - Chief Financial Officer and Principal Accounting Officer
    “We have given you the estimated spillover from 2011 into 2012, and that has been disclosed as we wrapped up our tax return for 2011, which was about $0.79 per share. We have not done a final calculation of where we will be at year-end because to do a calculation of the spillover from 2012 to 2013, we will have to actually finish up the year. But, as Mike had said in his earlier remarks, we expect that we'll continue to have a spillover amount into 2013. But at this point, that number hasn't been finalized.”

    Read the earnings report and especially the earning call transcript. The question and answer sessions are interesting. Not to insult anyone’s intelligence but at first you may or may not understand them and at times read between the lines a little. It does give you a sense of where the company is headed and thinking. Realize they are reacting to a past quarter and giving forward-looking statement. It is still good to do and while I am far from any analyst it will give me a sense of the company and I’ll feel better or worse about the investment I am holding which could lead to a sell, or buy. I am comfortable where the company is at, especially considering the current market conditions.
    Nov 6 01:56 AM | 2 Likes Like |Link to Comment
  • Ares Capital: Long-Term Value With A High Dividend [View article]
    Well that last post did not take very well.

    For the quarter ended September 30, 2012, Ares Capital reported GAAP net income of $136.6 million or $0.59 per share (basic and diluted), Core EPS(2) of $0.42 per share (basic and diluted), net investment income of $89.5 million, or $0.39 per share (basic and diluted), and net realized and unrealized gains of $47.1 million or $0.20 per share (basic and diluted).

    Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.
    Nov 5 10:20 AM | Likes Like |Link to Comment
  • Ares Capital: Long-Term Value With A High Dividend [View article]
    Ares Capital Corporation (ARCC

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    ) announced that its Board of Directors has declared a fourth quarter dividend of $0.38 per share and an additional dividend of $0.05 per share, both payable on December 28, 2012 to stockholders of record as of December 14, 2012. SEPTEMBER 30, 2012 FINANCIAL RESULTS Ares Capital (ARCC

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    ) also announced financial results for its third quarter ended September 30, 2012.
    Nov 5 10:10 AM | Likes Like |Link to Comment
  • Ares Capital Management Discusses Q2 2012 Results - Earnings Call Transcript [View article]
    I totaly agree: Long Ares

    http://seekingalpha.co...
    Nov 5 09:55 AM | Likes Like |Link to Comment
  • What's Next for the Tanker Industry? [View article]
    I agree and appreciate the comments - a lot of variables and COAs that can happen at this time.
    Nov 3 02:48 AM | 1 Like Like |Link to Comment
  • What's Next for the Tanker Industry? [View article]
    Nov 1 (Reuters) - Overseas Shipholding Group Inc's warning that it may file for bankruptcy protection has companies that lease ships to the world's No. 2 tanker operator scrambling to find alternative customers and writing down the value of their OSG contracts.

    Nearly 35 percent of OSG's 112-vessel fleet is leased, with contracts ending between 2013 and 2018.

    "We are in contact with willing alternative operators should OSG fail to retain the bareboat charters, but we think this is an unlikely outcome so far," said Leigh Jaros, chief financial officer of Oslo-based American Shipping Company ASA, which has leased 10 tankers to OSG.

    The book value of those tankers was about $932 million in the second quarter.

    OSG, which has a stock market value of about $36 million, said last week that it was evaluating options including filing for bankruptcy protection as a result of a tax issue that could force it to restate results for at least the last three years.

    OSG's main credit line, a $1.5 billion fully drawn facility, is set to expire in February, leaving it with few options other than to restructure, shipping and restructuring experts said.

    The troubles at New York-based OSG could also ensnare Diamond S Shipping, backed by billionaire Wilbur Ross, which has eight vessels on lease to the company.

    "The issue is that those charters (with OSG) were calculated as being good cash performers for Diamond S Shipping," said Paul Slater, chief executive of financial consulting firm First International Corp, which helps companies operate under the protection of a bankruptcy court.

    Any loss of OSG charters could also affect the delivery of eight new Suezmax, or mid-sized tankers, that Diamond has ordered from South Korean yards, Slater said.

    Deliveries were to have started in 2012, according to the private company's website.

    OSG spin-off DHT Holdings Inc has already written down the carrying value of its fleet by $92.5 million, citing the four ships it has on charter to OSG as well as weak market conditions.

    "With so much uncertainty about our future cash flow due to the OSG situation, we are going to play it very cautiously in the near future," Eirik Uboe, DHT's chief financial officer, said on a post-earnings conference call last week.

    Daily rates for DHT's tankers chartered to OSG range from $20,700 to $33,500.


    NO DEFAULTS

    Companies that have leased ships to OSG said it had not defaulted on payments and that no charters have been withdrawn.

    "The vessel charters are performing as per the terms of the time charter party," Diamond S Shipping Chief Executive Craig Stevenson told Reuters in an email.

    DHT Chief Executive Svein Harfjeld said OSG had not sought to renegotiate any charter contracts. "They are current on payments to us," he said, while declining to speculate on how an OSG bankruptcy would affect his company.

    OSG can cancel its charter-in contracts -- those that cover vessels a firm leases, as opposed to those it charters to others -- once it filed for bankruptcy, restructuring experts said.

    "Charter-in contracts are an enormous problem in shipping companies these days," said Albert Stein, managing director at AlixPartners, a restructuring firm. "They can hold up the restructuring process."

    Citing the example of Danish shipping group Torm A/S , First International's Slater said OSG would have to renegotiate chartering contracts for any reorganization to be successful.

    Torm, which mainly operates dry bulk vessels, said last month it had renegotiated contracts with shipowners to align charter rates with market levels or had arranged to cancel them.

    OSG would likely cancel the 10 ships it has chartered for its U.S.-flag fleet, Slater said.

    Those ships are chartered from a unit of American Shipping Co, and were earning an average of $57,800 per day as of June 30, according to an OSG regulatory filing.

    Kirby Corp, which has replaced OSG in the Dow Jones Transportation Average, has expressed interest in this fleet.

    "We are watching the OSG fleet ... They control equipment which certainly is very attractive," Kirby Corp CEO Joe Pyne said on a post-earnings call last week.

    OSG's shares have tumbled more than 80 percent in the past month. The stock, which traded for as much as $88.57 in 2007, closed at $1.12 on the New York Stock Exchange on Wednesday
    Nov 2 01:08 PM | 1 Like Like |Link to Comment
  • DHT Holdings: Afloat After Its Q3 Earnings Release, But For How Long? [View article]
    Nov 1 (Reuters) - Overseas Shipholding Group Inc's warning that it may file for bankruptcy protection has companies that lease ships to the world's No. 2 tanker operator scrambling to find alternative customers and writing down the value of their OSG contracts.

    OSG's main credit line, a $1.5 billion fully drawn facility, is set to expire in February, leaving it with few options other than to restructure, shipping and restructuring experts said.

    OSG spin-off DHT Holdings Inc has already written down the carrying value of its fleet by $92.5 million, citing the four ships it has on charter to OSG as well as weak market conditions.

    "With so much uncertainty about our future cash flow due to the OSG situation, we are going to play it very cautiously in the near future," Eirik Uboe, DHT's chief financial officer, said on a post-earnings conference call last week.
    Nov 2 12:59 PM | Likes Like |Link to Comment
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