Share Name Share Symbol Market Type Share ISIN Share Description
Clarkson Plc LSE:CKN London Ordinary Share GB0002018363 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -40.00 -1.52% 2,585.00 2,580.00 2,600.00 2,620.00 2,585.00 2,620.00 773 11:03:30
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Transportation 363.0 0.2 -42.4 - 785

Clarkson Share Discussion Threads

Showing 5026 to 5045 of 5150 messages
Chat Pages: 206  205  204  203  202  201  200  199  198  197  196  195  Older
So much for the profit warning. Now they say: Robust performance despite continued challenging market conditions in many of our markets.
The Shipping Finance Crisis - P Slater CEO First International - 23 June 2016 It is now clear that the demands for shipping services are way below the availability of the fleets of existing ships in most sectors. While the tanker markets remain finely balanced, as the price of crude oil does not seem to affect demand, orders for new crude carriers are cause for concern. The dry-bulk and container sectors are grossly over-tonnaged causing most companies in these sectors to record growing losses. Most financial analysts and some major shipbrokers now concede that this shipping crisis will continue through the remainder of this decade and maybe well into the next one. The publicly traded shipping companies provide a window of information on the crisis, but represent less than 25% of total fleet capacity, and are the area where most of the new equity has been invested and lost. Other companies which are subsidiaries of major industrial companies such as Maersk, Mitsubishi, Hyundai and the Oil Majors, do not publish detailed financial statements but some have recorded financial problems with their fleets. The Asian shipbuilders are in deep trouble with capacity down by over 50% and the volume of ships on order is at a level last seen in the late nineties. The Chinese will continue to support their shipbuilders, as part of its plan to keep freight rates down on its primary routes, by building new ships for Chinese owners or those chartering ships to Chinese companies. Thus the shipping industry has reverted to its traditional structure with large private owners and the industrial groups contracting for ship charters on terms that are rarely published, while the new public companies fight for business in the spot markets. Estimates show that more than $50 billion from Private Equity and Hedge Funds has been invested in the public companies. Another $50 billion has been invested in Germany by the German KGs. These equity funds were supplemented by huge levels of bank finance which was recklessly lent with no secure income streams in place. The German shipping crisis has created more than $50 billion of non-performing loans in the German banks and an estimate of a similar level of losses in the KG funds. Estimates of the total bank losses exceed $100billion. The publicly traded shipping companies are today hardly solvent, generating revenues that barely cover vessel operating expenses, do not cover debt service or generate cash reserves for essential maintenance, and are in many cases managed by the investor funds that do not understand how shipping works. Also the fundamental financial fact is that ships are depreciating assets that have operating lives that rarely exceed 20 years. The GAP accounting rules depreciate the ships over 25 years and the NAV is therefore not in line with true values and in this crisis the market values are invariably below NAV. This summary identifies the crisis but the cause is mostly self-inflicted. The Chinese industrial boom of the last decade was always temporary and with the appointment of a new government in 2010 the excesses of the previous one were revealed and steps taken to re-balance the economy and centralize controls again away from the Regions. The shipping industry, fueled by huge amounts of new risk capital and careless bank debt, embarked on a new-building program that enlarged fleet capacity by more than 50% in the dry-cargo and container sectors and by 30% in the products carrier sector. Large orders for new deep-ocean oil rigs and fleets of offshore supply ships combined, with the ships, to fill the world’s shipyards through 2010. By the time most of these ships were delivered it was obvious that the China boom was over and along with the banking crisis the global economies were heading for another recession. As the share prices of the public companies dropped more Funds entered the markets buying on the false assumption that ship prices would recover to the heady levels of the last decade. This ignored the fact that voyage revenues were not covering all the operating costs, including maintenance and repair, or generating cash reserves to meet fleet replacement costs. Ship values continued to decline but instead of closing out the risks by selling the ships, various forms of restructuring were instigated by the Funds which served only to compound the problems. These included: - more Secured Debt; Perpetual Preferred Equity and Reverse Stock Splits, all designed to keep the companies afloat while effectively wiping out the original equity. As the Funds had no experience or way of increasing voyage revenues they focused on operating expenses, but have adopted measures that can seriously affect the safety and reliability of the ships. These measures include: cheap or under-paid crews; little or no spare parts on-board; minimal maintenance and no cash reserves for statutory dry-dockings. The Head of one large dry-cargo company, and an ex-banker, recently boasted the he had got costs down to $4,000 per ship per day. To which one major Greek shipowner commented “which part of the ship is he running?” Comparatively the Chairman of Nordic American Tankers also stated that his operating costs were $11,000pd. He is a long term shipping expert who does understand the industry. Consolidation has also been trumpeted but so far the largest one in the dry-cargo sector is a disaster and will likely end in total collapse. Like restructuring these activities generate huge legal and banking fees and so far fail to generate increased revenues. Charterers are increasingly unwilling to fix ships from most of the public companies on anything more than voyage charters, yet some of the dry-cargo companies still report period charters at rates that fail to cover costs. The solution is to sell the ships that are not financially viable before their running costs increase and their values decline further with age, pay off the secured debt and distribute the balance, if any, to the equity holders. This needs to be done soon and certainly by the end of this year as the public share prices continue to decline and the global economic outlook is gloomy.
The words horse and stable door spring to mind.............
Ouch, big warning.
Lydnem: Interesting how you quote 3,000p as a broker target. I spent today calculating a very conservative target of 3,000p also. Actually a more probable outcome if CKN continues at its current pace (and if this bad market were to continue for 5 years) then I was calculating more like 5,300p in 5 years, above 13,000 in 10+; adjust this with a 30% current risk discount rate; it should be more like 3,700p present value in this uncertain financial climate. Even at 3,000p there is a 25% upside at todays price. Current p/e of 35 seems expensive to some I suppose, but CKN is a great co and very very cheap 'value' imo. A pretty high p/e for a bad market could indicate informed investing in quality co's in shaky times?
moelfre geld
Indeed. i think rivals Braemar look v good value too....
Nice rise today. Theyve been tipped apparently, broker target of 3000
these should be excess 23 quid by now...suspect some nutcase shorters depressing them - judging from the trade patterns.
Freight market continues to push better which will be helpful.
Read Panmure’s note on Clarkson (CKN), out this morning, by visiting … "We believe Clarkson has a uniquely strong market position in marine broking and investment banking and is taking advantage of current difficult industry conditions to leverage its position. We forecast strong growth in earnings and free cash flow from 2017 driven by achievable revenue and margin growth that could see the company trading at a 27% discount to its historic P/E by 2018 and potentially offering a yield of 5-6% on its full distribution potential. We reiterate..."
SO they place 2m shares at 1840 yesterday yet they trade at 2400 today? Strange The day chart shows 2005 on my screen though, i think advfn might be having problems though as it shows at 2395 on google
I think for once - such cynicism would be justified. The market is full of people who trade on inside knowledge; the authorities don't police it adequately.
Up 15%. Does anyone know what's going on? Surely more than just clearing the overrhang of Platou shareholders.
Allowing for £90m net cash, CKN trading around 13x earnings on an historic basis and is yielding around 3%. Seems fair value for a market leading company, even at a time when markets are tough. Am interested in their view that tough markets will lead to a flight to quality, that they will grow business deapite the tough conditions. Happy to hold GLA.
Great results, wasnt expecting dividend increase. I was expecting full blown profits warning, so although not positive, the statements are above my expectation so pleased.
Results in line with revised forecasts, but outlook statement very vague and looks like they're up against sig headwinds. Next years figures assume a decent level of growth and I'm not sure they'll achieve that. PER still relatively high for a stock with such an uncertain outlook. I'll wait on the sidelines for now. GLAH.
I am a big fan of clarkson, a well run company with some great numbers over the years I am concerned that whilst they will hit the numbers this year, I am worried the figures will be accompanied by a profits warning for next year. I do hope I am wrong
They release their results then. I believe that they've done quite well, given the market, and that will give confidence to investors
Stupid question but why please?
Big gains coming here after the 7th
Chat Pages: 206  205  204  203  202  201  200  199  198  197  196  195  Older
ADVFN Advertorial
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210127 11:34:48