Hellenic Carr. Share Discussion Threads

[hugepants] 06/9/2012 07:57

interms out. Im guessing pretty much as expected.

[stemis] 04/9/2012 10:25

Yes, I've listened into the conference call before. It's okay.

[diku] 04/9/2012 09:41

Beginning to think results might not be as bad as market had feared...

[hugepants] 03/9/2012 09:05

Theres a telephone conference call with Thursdays results. Has anyone tried it before?

[diku] 29/8/2012 10:29

Is that some kind of a coded message to MM's with just 1 share?.....

[hugepants] 27/8/2012 10:46

How much debt they got left is more to the point

Obviously they don't see debt as an issue when they are wanting to buy another boat with the proceeds from the one they have just sold! Gearing was only 30% at the final results and they have a big pile of cash on the balance sheet. I assume they are going to use this to pay for the boats under construction although I thought they had a arranged a debt facility for that? Operating cash flow last year was over $16M which is the same as the current market cap!
I wonder how much cash they have now? They've realised $15M since the last results on the sale of 2 vessels and maybe another $5M cash (allowing for slowdown) generated from operations

[eelanguilla] 24/8/2012 19:32

this is a silly price to nav - i hold from higher up. Not worried about the co. but the high % held by the owners + the sector as it is - for many of these if u could guarantee survival if would be great value down here.

How much debt they got left is more to the point

[hugepants] 24/8/2012 15:22

With a bit of luck there could be a re-rating at the interims. Last NAV was about 130p and that was after a NAV write-down. Id guess another one is coming but by how much? If they wite-down the value of the boats by another 10% the NAV should still be well over a quid.

[stemis] 24/8/2012 08:08

Seems like a sensible tidying up exercise. The vessel is over 20 years old so getting close to book value is a reasonable deal. The comment

"..the lender of M/V Hellenic Sea has agreed to transfer the proceeds from the sale as bank financing towards the acquisition of a modern second hand bulk carrier, within a period of 12 months from completion of the sale."

doesn't suggest any concern over the long term financial viability of HCL.

Interims in 3 weeks

[hugepants] 24/8/2012 07:28

Another boat sold. Sales price $5.3M but only 4% below book value.

[diku] 16/8/2012 12:06

If I remeber correctly yes it seems to be within the family....and the CEO is a woman who happens to be highly educated.....if it can survive the downturn then on a 3 - 5 years hold if the World economy recovers could offer good potential.....

[hugepants] 16/8/2012 11:37

Yes I'm holding. I think the last stated NAV has to be a work of fiction given the current share price. I did some quick calcs based on writing down the value of the boats (including the final cost of those under construction) by 30% and I get net tangible asset value of approx 3 times current share price. Say 50p-60p. But who knows. There are a lot of variables here. I also don't much like the 70% shareholding of a few shareholders.

[diku] 15/8/2012 20:26

I assume you are holding....have been monitoring its fall on very very tiny volume as an illiquid stock...results should be out next month...

[hugepants] 13/8/2012 15:03

Is anyone else holding this abject pile of garbage or has everyone given up and sold?

[hugepants] 10/8/2012 11:15

Not looking good here at all. News like this wont help either.

UK's Oldest Shipowner Liquidated
Bruce Barnard, Special Correspondent | Aug 9, 2012 12:52PM GMT



Stephenson Clarke Shipping was established in 1730

The UK's oldest shipowner, Stephenson Clarke Shipping, has gone into liquidation after more than 280 years in business.

The bulk carrier operator, founded by the brothers Ralph and Robert Clarke who bought a 300 ton-sailing vessel in 1730 when King George II was on the throne, sold its last ship in July as it gave up the struggle to survive the global economic downturn that has driven freight rates close to historic lows....

[hugepants] 19/7/2012 10:02

Only £9.6M market cap now. What kind of write-down do you have to give to the boats for this valuation to make sense?

[hugepants] 16/7/2012 10:58

another TMF post

[hugepants] 10/7/2012 13:10

Some Motley Fool discussion

[hugepants] 26/6/2012 09:51

Well if it was cheap in April its looking a lot cheaper now. Largish trade at 26.5p. Anyone know how are other stocks in this sector doing?

[citymohawk] 16/4/2012 12:54

The p/tbv here seems extraordinary yet over the last few months i have struggled to figure out why there is such a discount. They have committed cash to two extra vessels but surely the debt structure will be reduced from income hence I fail to see why HCL is so cheap right now.

Any thoughts welcome

CM

[stemis] 05/4/2012 16:59

Sale of M/V Hellenic Sky for $10.1m gross



The vessel was initially acquired in July 2003 for a total consideration of US$13.2 million. During the past nine years of its operation, the vessel has contributed approximately US$19.4 million to the Company's net profit. Taking into account the net book value of the vessel and the sale related expenses, the Company expects to realize a net book gain of approximately US$2.5 million on this sale.

Seems like a good deal, cutting proforma net debt to around $30.0m and increasing proforma gross cash to around $58.0m. It also provides some support for the valuation of vessels in the balance sheet with the sale price in excess of written down NBV. Tangible net asset value is now around 132p compared to a share price of 39p (up 1p on the news).

[underhill] 29/3/2012 00:16

"...its more of a longer term hold."

Right. Or it's a sell, put your money somewhere better, buy back in 2-3 years.

[stemis] 14/3/2012 09:05

Nothing really new in the results. Net asset value is now 129p a share after writing down the value of ships to their recoverable value.

Despite a loss of $1.1m (before impairment) the company generated cash of $9.2m before dividends and loan repayments. Losses of $5.4m are forecast next year, which equates to cashflow of +$5.0m. That compares to market cap of $28.7m.

The dividend was passed as expected and the loss (before impairment) was pretty much in line with analyst forecast.

The narrative seems to suggest a recovery in two years time, so its more of a longer term hold.

Web cast at 2.00 pm.

[nscap] 08/2/2012 20:36

One simple question on this:

Whats the price/unallocated cash?

[stemis] 27/1/2012 09:25

I doubt HCL is profitable. Brokers seem to be forecasting losses of £5-10m in 2012. However with the high level of depreciation (>£10m pa) they probably will still be generating cash. I suspect the dividends gone for a while though.

The shipping market is very cyclical and with tNAV of 175p/share and gearing of 27% (pre delivery of 2 Kamsarmax), HCL looks financially strong enough to make it through to better times.