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During the IPO season Francis Gaskins, editor of IPOdesktop.com & director of research for Equities.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg... More
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  • IPOreport -- Costamare (CMRE) shipping 0 comments
    Nov 1, 2010 1:22 PM | about stocks: CMRE, GSL, SSW, BALT, GNK, EGLE, ALEX, DRYS, NMM
    IPO calendar for Nov 1wk

    Costamare (CMRE), $213mm IPO with a market cap of $965mm
    scheduled for Thursday, Nov 4

    CMRE Valuation Summary

    SUMMARY

    . Number of ships is down to 41, from 53 in 2008
    . Six month revenue is down, net income is down
    . Intends to pay a 6.25% annual dividend
    . Three customers account for 73% of revenue
    . Use of proceeds is unclear

    BUSINESS
    Container ships

    DIVIDEND POLICY
    . Intends to pay stockholders quarterly dividends of $0.25 per share, or $1.00 per share per year
    . 6.25% annual rate

    CUSTOMER CONCENTRATION
    . CMRE’s containership fleet is currently under time charters with eight different charterers.
    . Three companies represented 73.9% of revenue in the first half of 2010.
    . For the three years ended December 31, 2009, the three largest customers by revenue were A.P. Moller-Maersk, MSC and COSCO; together these three customers represented 77.3%, 71.1% and 73.7% of revenue in 2007, 2008 and 2009.

    2008 REORGANIZATION
    Costamare Inc. was incorporated on April 21, 2008 for the purpose of completing a reorganization of 53 ship-owning companies then owned by the chief executive officer and other members of the Konstantakopoulos family under a single corporate holding company.

    PAID OUT $400MM in distributions
    To buy 53 ships.  The number of ships has dropped to 41 as of October 15, 2010
    . Since 2008 in relation to the reorganization process paid out distributions to existing stockholders of $400.0 million ($269.0 million of which was paid in 2008 and $131.0 million in 2009).
    . No distributions were paid in the first half of 2010.
    . The dividends and distributions paid during 2008, 2009 and the first half of 2010, were funded in part by borrowings and in part by cash from operation

    USE OF PROCEEDS
    $196mm
    . General corporate purposes and potential future vessel acquisitions
    . May use a portion of the net proceeds, together with debt financing, to fund contracted containership acquisitions

    CMRE Valuation Summary

    Stocks: CMRE, GSL, SSW, BALT, GNK, EGLE, ALEX, DRYS, NMM
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