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  • 2 Fashion Companies Trading Under Cash Value [View article]
    Nice article and very interesting companies at these prices.

    I do think many people will come to this article thinking that you meant these companies were trading less than the net cash (cash minus debt) which would be incredible and seems to happens every now and then. Do you know anything about their debt?
    Aug 28, 2012. 10:06 AM | Likes Like |Link to Comment
  • To Own Gold Or Silver? That Is The Question. May I Suggest...Both? [View article]

    I am confused by the phrase: "The news of canceling the deal with NG at Donlin."

    Can you cite any kind of source that demonstrates a deal with NG was cancelled at Donlin? I thought you wrote articles in which you understood what happened didn't actually change anything for the business of NG or ABX with regards to the Donlin project. Both are continuing with the project as planned: paying for permitting costs the next couple of years.

    Am I wrong?
    Aug 26, 2012. 03:40 PM | 1 Like Like |Link to Comment
  • Is NovaGold A Long-Term Buy At These Levels? [View article]
    I am not even sure how this is a short term headwind for them. This seems to change absolutely nothing about how they would execute business in the coming 2-4 years. If someone can tell me otherwise then please do, but construction was going to start at soonest in 3 years and they have a lot of time to figure out how to reduce costs and potentially see the price of gold appreciate substantially.

    It obviously effected the share price today, but that's about it as far as I can tell. If they needed to start construction in the next 2 years and had already identified all capital saving opportunities then it might be a big deal but they are just beginning that process.

    Thank you for your timely and sensible article =)
    Jul 26, 2012. 04:26 PM | 2 Likes Like |Link to Comment
  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of 1Q 2012 [View article]
    Thank you Ron, I understand the concerns I do however trust the ability of management to execute on their proposed growth proposals which should serve to increase cash-flow within the next couple of years. All things being equal (and who can predict the future?) I don't think this company would bite off more than it could chew, though it wouldn't be the first time smart people made stupid decisions.

    You said in one of your comments BWP's growth pipeline is small relative to other MLPs, but as long as their growth pipeline is sufficient to secure the current dividend rate wouldn't BWP represent a better income investment because the yield is the highest?
    Jun 18, 2012. 12:16 AM | Likes Like |Link to Comment
  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of 1Q 2012 [View article]
    Does the $300 million debt offering at 4% contradict the thesis set for in this article that it will be difficult for BWP to recieve financing?
    Jun 17, 2012. 08:28 AM | Likes Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    I'm actually happy with his latest video interview. By the end of the year he will have either bought back a ton of shares or reinstated a dividend if the share price has appreciated a lot.
    May 23, 2012. 11:58 PM | Likes Like |Link to Comment
  • Dividend News And Catalysts Should Boost General Electric [View article]
    Which is why holding stable high-yielding equities is frequently not a horrible place to park a lot of money for a long time.
    May 17, 2012. 01:45 AM | Likes Like |Link to Comment
  • Dividend News And Catalysts Should Boost General Electric [View article]
    Actually a shareholder since 1999 (who bought the stock in the middle of a bubble) would not be doing that poorly because GE's consistent dividends (especially if reinvested) would have provided nice income over more than a decade.
    May 16, 2012. 03:51 PM | Likes Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    I like your thought process Halflink, if there is one thing I know that makes GASS different, it LPG handysize niche it fills. Assuming Harry isn't lying and has access to decent information (I believe both those assumptions) his company's main assets aren't going to become worth much less because of the lack of supply of LPG handysize ships for the next couple years. It will definitely be key to see how they are able to handle maturing debt for a longer term perspective on being a shareholder.
    Mar 19, 2012. 11:06 PM | Likes Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    When 2008 did happen, they had no problem servicing their debt? Energy demand is pretty inflexible. People still need LPG shipped even in a world depression. Gass operated profitable, it only took a very large non-cash impairment charge because the value of its tankers took a very large hit, which put it in violation of one of its debt convenants relating to the asset value to debt ratio. Nevertheless, GASS was still profitable.

    Harry also has interest rate hedges in case rates increase as a lot of his debt is based of LIBOR but I think a good portion is a fixed rate.
    Mar 13, 2012. 01:10 AM | Likes Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    Unless the beach house produces income, they are fundamentally different. A beach house derives its value from its location, size, etc...; a ship derives its value from its income producing potential + scrap value. I think this will become more significant in the next year or two as Handy Size rates should go up very nicely as demand rises slightly and the worldwide fleet size decreases.

    I think there is one thing we can all agree on: Harry should USE the buyback program before the shares get more valuable. I personally think the market has begun to recognize none of GASS's business is really effected by the Greek economy.
    Mar 1, 2012. 11:07 PM | Likes Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    Correction to previous comment:
    The Vafias family owns more than 10% I think it is more like 19% but I forget the exact number.
    Mar 1, 2012. 02:41 AM | 1 Like Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    I understand your critique that says you can't have it both ways, being conservative with cash and increasing leverage. However, I am not sure he has to increase leverage to expand the fleet. It seems like he remains committed to being below 50% at very low rates. If he bought one or two ships a year with 30% cash I think leverage would stay the same due to payments on existing debt.

    I am curious to see the profit that was made on Gas Kalogeros, if it is significant, I will have no problem with it.

    Also, the reason Mr. Vafias is sad that his share price is low is that his family owns 10% of it. Even though, yes he "should be glad" for the opportunity to retire shares through a buyback program, but his liquid net worth has suffered a lot since the shares were $15. There needs to be a lot of quarters above 25 cents a share in earnings if he ever wants the shares to reflect the NAV of $14. I think $8 is probably a better target to sell at as a reflection of realized value.

    Also, you could not just as easily say the crisis in Greece will be resolved. The greek economy is falling apart. Go read zerohedge or just type in Greece to google news. Corruption, Striking, Collapsing GDP and tax revenue. They have defaulted on their bonds, just waiting to see who, how, and when the pain will be felt for private investors. Harry Vafias is living in the middle of it.

    Whether any of that will have an effect on the price of GASS remains to be seen.

    To your question about the beach house: in your example I would buy my partners share. However, GASS isn't a beach house and buying back shares does not make it more profitable and does not make it a better business. It does provide a service for shareholders.

    I do sincerely hope that $50 million buyback program is utilized to its fullest as well, I just think it still represents a good investment at its current price even without the buyback program.
    Feb 29, 2012. 11:47 PM | 2 Likes Like |Link to Comment
  • Stealthgas: Company Hits A Crossroads [View article]
    Interesting article Steven,

    I do have a couple of points I'd like to bring up about it though.

    On share buybacks: CEO Harry Vafias believes, with perhaps some justification, that the Greek/euro crises is going to lead to an even greater depressed share price at some time in the future. Being as conservative as he is, he feels uncomfortable using the money with that intuition. Anyway, he could still buy back almost half the market capitalization tomorrow.

    On the sale of the Gas Kalogeros: I think you have interpreted this event in the wrong light. Think of buying GASS shares as an arbitrage between what public and private market buyers are willing to pay for its ships. In this case, Harry is selling things that can be purchased for a 75% discount in the form of GASS shares for a gain on the stated value of the ships in the form of private market transactions. This will dramatically increase the cash position, lower the debt/asset ratio, and hopefully help realize value.

    On buying ships/increasing debt: I think you underestimate the desire of central banks to keep interest rates at all time lows. The inelesticity of demand for energy products like LPG provides safety for assets like LPG carriers even in a recession. Stealthgas is ultimately a company that desires and needs to make money through owning ships and chartering them out. They main way for them to grow is to purchase ships. If this can be done with a very nice return on investment, as the current circumstances allow then Harry should be thinking about growth. Ships are ultimately better cash producers than cash doing nothing. With debt being so cheap right now, I am sure the return on equity looks quite attractive.

    Anyway, thank you for the article!
    Feb 29, 2012. 08:53 AM | 2 Likes Like |Link to Comment
  • Papering Over The Gold Standard's Flaws [View article]
    If you have to ask, you might already be an alcoholic (sticking with the metaphor). Silly things begin to happen, easy credit allows individuals with incomes around 30k to attempt to flip 5 houses with no money down, you know you have a problem.

    Every bubble is different, they just get corrected more quickly on the gold standard.
    Feb 15, 2012. 11:14 PM | Likes Like |Link to Comment