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Good morning all. I see that Frank Dunne purchased another 44622 shares 11/12/2023 @ $0.83 each, very nice to see that confidence in one of our directors.
Re TMI/TMIP, as far as I'm aware it's the same scenario as the old RDSA/RDSB shares. It's been this way since trading began nearly 4 years ago. There's been a close correlation between the two all along, accepting the currency fluctuations.
If you want to buy in £ and receive your dividends in £ then you buy TMIP.
If you want to buy in $ and receive your dividend in $ then you buy TMI.
Candidinvestor, as you say, we are broadly on the same page. It is impossible for the Company to give some form of dividend commitment for next year, we know their stated aim, but they will eventually have to follow the medium -term movement in the NAV over 3 or 4 quarters, they can take 1 or 2 bad quarters but not 3 or 4 in a row. Thank goodness for the positive momentum, the Baltic Handysize index is now up 34.99% YTD and the Baltic Supramax index up 39.36% YTD. Regarding the difference between TMIP and TMI, other than the difference in currency I honestly do not know. Since the Company floated they have has TMI in GBP and TMIP in USD. I have always thought the TMIP in GBP is to catch the smaller PI's in the UK while TMI in USD is to catch the bigger players particularly in the USA? I am interested to know myself.
Thanks for your comments Mike , and I think we are broadly on the same page, apart from relative confidences of the future dividend ..I would have liked to see some form of dividend commitment for next year ..but that was missing ..yes I did read about the long term progressive dividend intent , but most companies would say that, and it does remain in doubt..
But yes you are absolutely right about not wanting to shout bad news from the rooftops because by doing so that would affect share price recovery , which again wouldn't be in the shareholders best short term interests....to be honest , I don't know what to think ..what I do know though is that some positive momentum has begun, which is usually a good sign
Incidentally can you answer my question regarding the difference between TMIP and TMI
Thanks
Candidinvestor, thanks for your comments. On your two bad points the operating profit (aside of the massive vessel value drops) was very slightly negative so as you say there was not any cash profit either and so as I pointed out the dividend cover was negative so that the dividend was paid out of cash/vessel sales which cannot be sustained in the long-term and is only a short-term measure and I agree that any drop in dividend would hammer the share price. Fortunately things are on the turn so the BHSI and improved vessel values look like preventing this happening but I agree they are skating on thin ice. The Company appears committed to the dividend and not reducing unless they have to so unlike you I do not think they will substantially drop the dividend in the new year.(but might have had to if the BHSI/vessel values had not recovered).
On your second point , I suppose the Company does not want to loudly shout about losing $120m but likewise they are not hiding it and the NAV drop is there for everyone to see.
Just a couple of observations ..good and bad
On the good side , yes charter rates have picked up incredibly and so all indicators bode well for the second half ..
..likewise there is a definite positive momentum in the share price .. lots of heavy buys and few sells
...debt reducing very nicely and firm intent to reduce further
..debts are in US$. At the moment exchange rates are 1.26 to £ so debt interest will fall in sterling terms , likewise income though too
Two bad points to note
..that was a large drop in value $120 million and there isn't really anyway of hiding that ...
..even allowing for this fall in value which didn't affect cash , there wasn't any cash profit either , so dividends were totally unfunded from operations..only by asset sales which isn't a healthy sign ....as an aside I think they will drop the dividend substantially in the new year and argue that its in the best long term interests to reduce the debt...any drop in dividend though will hammer the share price , which wouldn't be in our short term interests
One final thing to note...the executive summary was excellent and extremely positive and it made me feel very optimistic about the future ...it completely failed though to report that the company had actually lost $120 million in the first half , I had to go onto their website and read the interim report and accounts myself to pick up on that .
Have to be honest , that kind of behaviour doesn't go down well with me at all ...
All company reporting should be balanced and complete .Their release was neither
MYOMU
As an aside , can anyone tell me why there is also TMI company which is valued in dollars ? It's just that there were buys of over £1 million in this company today , whereas less than £100k went through the TMIP company
It has been announced today that Starbulk Carriers has taken over/merged with Eagle Bulk Shipping Inc at a 17% premium to Eagle's share price on Friday 8th Dec, The new Group will have a value of $2.1 billion and one 169 vessels (Newcastlemax/Capesize/Ultramax/Supramax).
Sam, still there!you lucky person! Safe flight home.
Only my view and I have been wrong , many times before , but some perspective is always good even if someone out there disagrees or has more accurate calculations.
We just need the BHSI to hold up and even better if vessel values actually increase rather than depreciate
Hi Mike , last night in South Africa so a little boozy ! Superb summary , I envy your financial analysis skills . This will come stood for those who take the long term view . Unfortunately what has contributed to crippling the UK is the constant short term view . In the meantime enjoy and reinvest the dividend
Hi all, we were told on 25th Oct that the unaudited NAV at the end of September has dropped to $1.31/share so the loss of $120.2m announced today is totally as expected. Unfortunately we are in negative dividend territory.
But the good news as Sam points out below $119m of this loss was due to like for like vessel value reductions and the Company told us that since the end of September vessel values have returned back to their end of June levels which IF MAINTAINED to the end of Dec is roughly worth $50m. Reducing the debt further with reduce the quarterly TMI interest charge to below $3m, our interest is in USD so effectively reliant on that the Fed does in the USA rather than the BOE. Then I reckon the TC equivalent in H1 of $11,550day will be over $14,000 in the current Quarter (today the BHSI is up exactly one third since the start of the year) . Remember that each increase of $1,000/day, based on current vessel numbers, produces about $3.6 m additional profit every quarter. On this basis an if the numbers are maintained then when the Sept-Dec NAV is announced at the end of Jan 2024 the NAV should have increased by around 16 cents+/share which I think should be enough to push the share price back above 70p/share.
Hi Krusty & Sam, yes a good set of figures and encouraging for the next quarter. Also IMHO I strongly believe that our interest rates have peaked ( unless the OBR or other so called “expert” group) come out with the usual pessimistic outlook I feel interest rates will start to reduce hopefully starting next May. I was a bit perturbed the last couple of days to read that the two figures that the BoE use for employment could be up to 1 million wrong in either direction so the rate setters are effective flying blind. Fingers crossed we are due some positivity here.
Absolutely Sam, & as you say looking very promising for next reporting period. Just need a global trade uplift now and we should be set fair here for a while at least. Also the dividend must be about 10% at the current exchange rate, so in effect we could get our investment back within a decade - not to be sniffed at!
Hi Krusty, think
Important to mention US 119m of that was due to reduction in vessel values . But continued rise in charter rates would be excellent news !
$120m loss for the first 6 months. Not great but probably about what had been expected. Doesn't help when the stated priority of the company is reducing debt. Also explains why so many vessels are having to be sold to meet debt reduction targets. On the positive side, looks like the second half has begun much better as far as daily rates are concerned, and as most vessels are on very short charter durations, plenty of opportunity to take advantage of any improvements as they appear. Good to see the average fleet age reducing too, bodes well for the future. All in all, not too bad - hope for better things at full time. K
Pleased with results and highly encouraging for next period .
Glad ABP worked or you. :-))
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Thanks Legsofman will do some research as this is driving me mad.
Yes, a good idea to get debt down when you are paying over 7% interest and your current ROI is below that. We already know from the trading update and Q2 quarterly unaudited NAV on 225th Oct that the H1 results on 11th Dec will not look pretty but the Q3 numbers should have a serious uplift which I agree is not yet reflected in the current share price. On Friday the Handysize TC was $13,908/day and the 4 route Atlantic TC a massive $19,206/day. Yesterday the BHSI increased 3.49% and is now up 20.66% YTD.
Many thanks
Morning,
I’m watching these shares and hope to purchase an initial lot in the next few weeks.
I use Adbloc Plus and AdCleaner on an old iPad. These work on this site.
Ghostery on a new iPad.
Some sites detect the software and request you turn them off. Easy.
There are numerous blockers so do a little research and try one out.
Cheers. Legs.
Morning river boy . Yes so am I . I am finding it more difficult to log on this page as a result . I am also annoyed re Hargreaves landsdown. My div was paid nov 24 but they only reinvest from the11th of each month ie dec 11 in this case . They in fact say between the 11 and 21 st which allows anything to happen on the markets. Before that period . I moved from interactive investor as could only hold the company shares in dollars there for some unknown reason .i am going to follow this up with the company . I am also starting to look at alternatives for my isa where they reinvest more quickly . Any suggestions more than welcome.
Morning Sam, yes great to have some solid news we have had a torrid time in recent weeks, let’s hope for some steady improvements in the SP now. On a separate point, I am getting fed up with the increased interruption on here with adverts. I know we have the option to go premium but it’s almost feeling like we are being forced.
Pleased with this . Loads of companies are doing the same so a very sensible move . Debt at time of acquisition was plus 40 percent so to get to 26 in a year with charter rates on the floor is very pleasing . Re the latter though delighted to note strengthened further on Monday so the money should be starting to flow in nicely . At some state the markets may begin to realise this and we see a share price recovery .
.... I should have said the BDI was up 101% not 10% in November.