I guess they passed out rose colored glasses to their management.
They say things are lookin' good, but if you read through their report, personally I wonder what this is based on.
Their average charter rate for 3rd quarter was $62,156 per day, but they adjusted it down to $45,756, which was closer to the market rates at the time.
An average of 12.1 vessels were owned and operated during the third quarter of 2008, earning an average Time Charter Equivalent, or TCE rate of $62,156 per day. Adjusted to exclude the effect of the amortization of time charters attached to vessels acquired at above or below market rates, the TCE rate for the third quarter of 2008 was $45,756. We refer you to the information under the heading "TCE rate and adjusted TCE rate" later in this release for further information regarding our calculation of TCE rate.
Ok, all fair and good. Now, let's look at what they are currently getting for their ships. Approximately $25,000 per day (I'll be generous)
New Charter Party Agreement
The Star Beta has entered into a short term period employment with Brazil's Companhia Vale do Rio Doce (Vale) for a minimum of two and a maximum of four months at the gross daily rate of $15,500 for the first 50 days and $25,000 for the days beyond 50 plus a repositioning ballast bonus of $525,000.
Yeah, sure. Things are really looking up. Actually the rates of $15,000 - $25,000 per day is closer to market reality.
It's almost becoming a penny stock as it is, with a 52 week low at USD 1.99. I guess they think by issuing the dividend it will keep the price up, and no one will read the fine print about all that other stuff, including the issuing of additional stock.
No comments:
Post a Comment