onneke's  Instablog

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MY name is Hans Spliethoff. Living in Holland/Europe. at 57 years, my career has mostly been devoted to shipchartering and shipowning, always with an emphazise on South-America. these days i work as full time investor , mainly on the USA stock markets and with a special interest on shipping &... More
  • Upward Potential For Undervalued ULTRAPETROL ( ULTR) 0 comments
    May 10, 2013 7:37 AM | about stocks: ULTR

    Further my previous blogs and comments, it now shows that ULTRAPETROL's 1st quarter results, reflect the new drive and input from Southern Cross shareholders, who injected 220.million usd in the company last december.

    from shipping sources in Argentina, I have learned that existing freight coa's for the riverbarges are being renegotiated at higher prices and too low contracts are being delayed or not performed.

    Finally..... the company is using its market power, to get better freights which have resulted in a tremendous better 1st quarter result then we have seen in the last 4-5 years.

    since the river business is abt 50 pct of the co's activities, this is very important and weighs heavy on the consolidated results.

    now that the company is about breakeven and becomming profitable , we can look at its valuation, which is still heavily undervalued.

    as outlined in my last instablog, the BREAKUP VALUE of the co. is minimum USD 3 per share. This value is the total of a fire-sale of all assets less liabilities. !!

    since the company is now breaking even, this kind of equasion is not necessary, but it clearly shows the undervaluation of the stock, which closed yesterday at USD 2,65, so still 13 pct under breakup value and I would say about 50-60 pct away from actual marketvalue.

    ULTRAPETROL is Argentina's leading riverbarge owner, major offshore PSV shipowner and the only fully automated riverbarge builder in South-America and in addition to this, owner of a variety of ships such as 2 containerships, chemical tankers etc.which are all sailing under the protective flag of Argentina, which guarantees a niche - market in which a good and profitable operation can be run.

    we are bullish on the stock with a shortterm target of usd. 3,50 .

    Stocks: ULTR
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