Global Oceanic Carriers Share Discussion Threads

[saucepan] 09/10/2007 16:27

Great stuff!

A reminder of the all time high at flotation:



A super base formation on which to build.

[george62] 09/10/2007 16:25

Big seller out there today happily being absorbed and share price moving higher. Bodes well.

[olivercromwell] 09/10/2007 16:09

interesting developments - it would be nice to emulate the performance of Dryship! Definite shortage of stock

oc

[rafieh] 09/10/2007 16:09

The chart is now having a fresh attack onto the new highs. I reckon this leg should get us to 148p in a matter of a few days.( possibly tomorrow)

[george62] 09/10/2007 15:30

There's my answer to what's been holding back the share price. Sale of 100,000 just reported. Hopefully, that seller's now dried up and we can move on up.

[slapdash] 09/10/2007 15:29

the spead here is ridiculous... I think 134-139... so almost 5%!!!!!!!!! Slap

[sharpshare] 09/10/2007 14:51

"NEW YORK (AP) -- Shares of drybulk shippers rose Monday, as day rates for those vessels surged to all-time highs.
The Baltic Dry Index, which tracks rates on 40 routes for vessels carrying cargoes such as coal, iron ore and grain, closed at 9565, up 130 points. The spot day rate for a medium-sized vessel now tops $78,000.

...In the drybulk market, DryShips Inc. surged $3.37, or 3.4 percent, to $102.37, after hitting an all-time high of $103.65 earlier in the session.

Diana Shipping Inc. rose 45 cents to $31.25, after reaching a new all-time high of $31.98.

Eagle Bulk Shipping Inc. gained 35 cents to $27.23..."

[george62] 09/10/2007 14:37

A little odd - 70,000 shares bought and only 500 sold over last 2 days, and the share price a measly 0.5p better. Either the mms had some stock on their books to shift, there's a seller in the background, or the share price is just gathering itself to go higher. Nice purchase of 20,000 just reported.

[ann gough] 09/10/2007 14:24

Possibly I missed it being discussed here in depth. Is there anything significant about the recent directorate change?

[sharpshare] 09/10/2007 11:55

Latest Drybulk newsletter. Charter rates and second hand prices going up.

[protean] 09/10/2007 09:47

The whole US transportation shipping sector is alight Sharpshare with superb share price performances from the likes of EXM, GLNG, DSC, TBSI, QMAR. The US usually moves first with these things, then the effect rubs off on the UK so plenty more to come for GOC I think.

[sharpshare] 09/10/2007 09:39

Anyone following industry leader Dryships? (NASDAQ:DRYS)
The share price has gone from USD10 per share to USD105 per share over the last 18 months. DRYS has just over 40 dry bulk carriers. Fantastic 1yr graph.

[davebowler] 08/10/2007 11:02

Thanks - very informative.

[tinker] 05/10/2007 12:32

Sharpshare

Thank you for all that effort and valuable info.

[olivercromwell] 05/10/2007 12:29

excellent stuff - many thanks

£3 - mid 2008

oc

[sharpshare] 05/10/2007 12:18

Go Carriers on the right track
Friday, 28.09.2007, 12:39am (GMT)



"
After embarking on a corporate restructuring programme in 2006, GO Carriers has dramatically improved its performance and efficiency. Global Oceanic Carriers Plc (GO Carriers) is an owner and operator of dry bulk carriers, providing worldwide seaborne transportation of products including iron ore, coal, grain, bauxite, phosphate, fertilisers and steel. An efficient and effective low cost operating platform is provided via GO Carriers affiliate company, Antares Shipmanagement which provides full technical and commercial management of its fleet. Antares is a well established ship management company whose offices are administered by a team of 18 on shore based professionals located in Glyfada Greece. In what the CEO called a transition year, revenue from operations for the year to May 31, 2007 was $27.1 million, up from $20.9 million in 2006. The current financial strength of GO Carriers comes after some major restructuring that was preceded by a challenging period for the company. Following a sharp decline in the dry bulk market, charter rates were adversely affected. The companies intention to acquire four new dry bulk carriers in 2005 was thwarted due to the depressed market conditions and low charter rates which would only justify three vessels. The cancellation of the fourth vessel impacted severely on the profit for the period and heralded a decline that lasted until early summer 2006. Since May 2005, the company has undergone some dramatic changes, particularly to its shareholder base, Board and management. Following a decline in the companies share price, many of the institutional holders sold their participation. This was largely due to the companies unsuccessful attempts to refinance the debt facilities and the interim results, both of which impacted upon the companies share price. In June 2006, Nicolas Pappadakis was appointed non-executive Chairman of the Company, Michael Tartsinis became Chief Executive Officer, and Antonios Nikolaou was appointed executive Director.
The new Board established a strategy and set out a series of strategic aims and objectives under the policy of restructuring for 2007, identifying four specific areas of the company to reform: namely, improving the effectiveness and efficiency of its operations, expanding and renewing its fleet, enhancing its financial disclosure and investor relations, and following corporate governance best practices.
Christina Anagnostara, Chief Financial Officer says that the restructuring that the company has gone through has seen a dramatic improvement in the performance of GO Carriers. Since the management team took over took in June 2006, we embarked on a complete corporate restructuring programme aimed at improving the sector differentiation of the operations. We expanded our fleet and improved disclosure and investor relations and the whole of our corporate governance practices, she explains.
To deliver its objectives, GO Carriers focuses on mid-aged dry bulk vessels where it can maximise ROI and profitability. This is implemented through timely acquisitions of strongly profitable, middle-aged (between ten and 15 years old) dry bulk vessels.
Secondly, the company seeks sustainable and predictable cash flows through extended periods of employment and long term charter coverage by the acquisition of vessels with attractive charters attached, or vessels that can attract charter immediately upon delivery. A further objective of the company was to reduce its operating and administrative costs. The new, cost efficient operation is managed by GO Carriers affiliate company, Antares Shipmanagement who now operate the fleet at vastly improved rates. We reduced management expenses because the precious management had too many high expenses in relation to the size of the company, says Anagnostara.
In addition to the corporate restructuring program, the company has recently successfully expanded its fleet following the initiation of a fleet expansion and renewal program - one of the strategic aims set out for 2007 by the new management team. And in order to develop new business opportunities, the company established a chartering subsidiary aimed at optimising fleet chartering while also creating a new profit centre for GO Carrier's business activities.
We have already entered agreements to purchase additional vessels that will be delivered within the coming months and we have also established an in house chartering company that can take better advantage of the chartering activities and reduce internal costs, she says.
Today, both the new shareholders and board work closely together in the business developments, this has resulted in a period of stability for the company. Our entire operating base is already employed on a six month period for 2008. Were following the strategy. We want to grow the company through the acquisition of vessels and were securing the long term future of the company. Financial growth will be funded by a mixture of new equity and debt, she explains. Looking ahead, the company aims to continue its expansion and expects a strong dry bulk market to remain encouraging. Market conditions are strong and I think they can stay like this because of the sustainable demand for commodities. China is very strong and we expect that to continue to drive the market because of the demand for infrastructure development. "We also see demand from the economically developed countries of South East Asia (Japan, Korea and Taiwan) and the developing economies of India and Indonesia. The market is further enhanced by growing demand among the developed economies in Europe and the United States.
On the supply side, the deliveries of new buildings are expected to be firm for 2007 and 2008 and equally strong for 2008 onwards. However, we believe that the demand side will be increased enough at least for the rest of 2007 and 2008 to absorb any prospective delivery of new vessels, says Anagnostara
We intend to take advantage of the current strong market environment and to proceed with our fleet expansion plans, financing them in an appropriate manner, says Anagnostara. An area that is of particular strategic importance to the company is the control environment which the company considers as the foundation for all other components of internal control. The company believes that the ability of its employees is a result of the managements philosophy and operation style, coupled with appropriate recruitment and training. The Company has an organisation structure which is tailored to its size; the company delegates internal control into four reporting lines responsible for control activities, information and communication, monitoring and risk assessment. GO Carriers has also established monitoring mechanisms for its ongoing business activities; these include supervisory activities which personnel take part in. Risk assessment practices are integral to the company - risk taking is paramount to the business, and the company uses a risk assessment mechanism to identify such risks and to assess their potential impact.
The corporate restructuring and new strategy has left the company in a strong position to put its objectives into practice, to achieve a leading position in the shipping market and to provide a sound base for providing customers and counterparts with a first class service. We believe that our strategy of pursuing further fleet expansion through the acquisition of mid-aged vessels, for which we seek long term period charters, can be optimally executed in the current strong freight rate environment, concludes Anagnostara. This will enable us to maximize return on investment and generate strong and predictable cash flows.
"

[sharpshare] 05/10/2007 12:09

Mr. Michael Tartsinis, CEO, Global Oceanic Carriers Ltd due to speak at the 9th annual Greek Ship Finance Forum on October 18, 2007 in Athens at the Ledra Marriot Hotel.

[sharpshare] 05/10/2007 12:01

Hellenic Shipping News interviews CEO of Go Carriers
Wednesday, 04.04.2007, 04:56am (GMT)



" Go Carriers on route to expansion and doubling of revenues. Michael Tartsinis, CEO of Global Oceanic Carriers (Go Carriers), a Hellenic dry bulk shipping company listed in AIM (Alternative Investment Market) of the London Stock Exchange is interviewed by Hellenic Shipping News, sharing his company's vision for the future. Go Carriers recently added two vessels onboard, currently controlling five vessels.
The company's management will now focus on identifying new investment opportunities in the second hand market, seeking vessels of 10-15 years of age.
The new management headed by Mr. Tartsinis took control of Go Carriers last year, through Antares Shipmanagement and after resolving a possible battle with an affiliated company of the Fidakis Group, also after Go Carriers. Since then, they have implemented a restructuring programme, which not only returned the company into profitability, but also is on track to almost doubling its gross revenues during 2007.
Could you give us some details on the company's main shareholders and their holdings?
Although the company's shares are free-floated by 100 percent, about 78 percent is controlled by three main shareholders, a private equity fund and a hedge fund, both based in Great Britain and the company's Board of Directors, which also acts as the management team of the company. Antares Shipmanagement, the operator of Go Carriers' activities and was founded about four years ago, by myself and local shipping entrepreneur Mr. Papadakis. Though this company we acquired Go Carriers' stocks and we managed to control about 19 percent. A little while ago, Mr. Papadakis sold his percentage of the stocks. So, now Antares controls 16.5 percent of the stock, while the remaining of the 78 percent is controlled by the two funds.

How did you gain control of Go Carriers?
About ten months ago, the company's stock was trading way below its true value, thus being the perfect target for a number of investors who were looking to find a quick way of entering the stock market. It was then that the Fidakis Group challenged the Board of Directors through an affiliated company, to hold an extraordinary general meeting of shareholders, in order to gain control over the management of Go Carriers and go ahead with a specific plan to develop the company. At the same time, we were also investing in the company's stock, acquiring stocks and controlling about 18 percent of the company's share capital, much in the way that Fidakis Group also operated, who managed to get about 15% of the company. In order to avoid a dreadful conflict, we came into understanding with Fidakis and held a shoot-out process, which resulted in Antares controlling about 60 percent of the company. We then changed the composition of the Board of Directors, by appointing Mr. Antonis Nikolaou as executive member and Mr. Papadakis as non-executive member, while myself was elected as CEO. It was then, that we began our restructuring plan to further develop the company.
Go Carriers entered AIM (Alternative Investment Market) of LSE at a very good momentum in May 2005. But later on, things evolved in a negative manner, due to the fall of the market and the shareholder base. Also, the company had some deficiencies and inefficiencies, but not in a bad sense. It was simply organized in the wrong way. For instance, ship management was based in Hellas, along with the CEO, while the company's Chief Financial Officer was based in Scotland and the auditors weren't familiar with the shipping industry.
We took over in June of 2006 and in August, due to the positive market momentum, we managed to add two more vessels in the company's fleet, raising the total number in five. On September we appointed Christina Anagnostara as CFO and later on she took a place in the Board of Directors.

If, hypothetically, you had the chance to move the company in the New York Stock Exchange overnight, would you go ahead?
In any case we have to consider the pros and cons of such a move. There is no doubt that the New York market is more mature and has many investors with a lot of money to spend. On the other hand, in order to approach the U.S. market, your company must have substantial operating results. At the moment, Go Carriers is a small company. Our goal is to double the company's size and reach a market capitalization of $200 million from today's $65 million, while increasing our assets from $150 million to $300 million and then maybe we'll discuss a possible floatation in New York. Nevertheless, we have to take into consideration that the U.S. market is much more demanding in terms of compliance. Another possibility is the main index of LSE, which is also quite deep.

Which is the company's investment programme? Does the management intend to move forward in 2007 with new second hand vessels purchases, or newbuilding orders?
I have to say that newbuilding is easier these days, because of the access to financing, while there's always the option of contract resale, leaving profits in a short period of time. Despite that, our plan doesn't focus on newbuildings, but on second hand vessels at the age of 10-15 years old. We can't go in the market looking for a modern capesize, let's say built in 2004, because the price tag of $110 million is close to 50% of the company's assets. But in vessels of an older age, like the one mentioned, provide a solid yield on investment, they are of good quality condition-wise and their future perspectives allow the owner to trade them for about two more freight cycles. All these parameters accommodate our company's investment preferences, both in terms of income and asset value.
In terms of sizes, we believe that every size suits us. Our current fleet is consisted from ships ranging from handy up to capesize and that's where we'll focus for the new acquisitions, covering all sizes. This mixture is the best, since it provides us with the necessary flexibility to bid in all possible cargoes and routes.

Depending on one owner's fleet capacity and age, which do you think is the better option in today's dry bulk market conditions, spot or time-charter?
Undoubtedly, both spot market and time-charter now are very strong. The question is the beginning point of each company. For instance, if a ship owner has acquired and paid off a vessel within the last three years, spot market is the best option, because he can afford the higher risk involved. If on the other hand, the vessel has been bought in high market prices and the cost hasn't yet been repaid, one has to be more careful. History has taught us that freight markets can be tricky and full of surprises, so you have to implement the proper risk management policies and take advantage of the high market rates with a rapid amortization of investment and proceed accordingly. Of course, if we're talking about large fleets, the ship owner has the ability to market some of those in the spot market, but maintaining the larger part in time-charter deals, in order to have a strong base of cash inflows. If we're talking about listed companies, management has to take into consideration the investor's interests and avoid risky policies, given the volatile nature of freight markets. It's better to go for a slightly lower but more secure profit, than the other way around.

Could you highlight a couple of routes that are considered very profitable today?
Well, at the current high market conditions, all routes are traded with high prices. But, capesize routes are a bit higher than the rest of the market, with an example being the route Barau-China. Another example is the panamax route for grains from the U.S. Gulf Coast to Europe.


During the last couple of years we've seen a new type of bulk carrier entering the market, the kamsarmax size, with about 80,000-dwt, like a large panamax.
Does this quantity and sophistication of ship types and sizes make things more difficult for a ship owner, in order to make the right investment choices?
Kamsarmaxes are mainly used for loadings from the port of Kamsar in New Guinea of West Africa, which has the necessary drought to accommodate such sizes. But now, an even newer type is arising, the post-panamaxes, whose width will be larger than 32 meters and they shall have a dwt of about 90,000. Their appearance has to do with the expansion of the Panama Canal.
What's for sure, in the future, if a large number of these ships enter the market eventually, we shall see a shrinking of the ton/mile ratio, resulting in more days out of service for each vessel, which in turn will cause the market to drop. These things need thorough planning and study. Historically, each time the ships' capacity was growing, we were seeing a negative impact in the market, until it found a new balance.

Which are the flag-states under which Go Carriers' ships operate? Do you believe that the recent measures undertaken by the Hellenic Ministry of Mercantile Shipping to make the Hellenic flag more competitive will change the attitude of ship owners towards it?
First of all, we are listed in the registries of Bahamas, Cyprus and Malta. Although I'm not very familiar with the latest moves by the Ministry, I can tell you that everything has to do with the crew's composition. The lowering of the Hellenic seafarers required to man each vessel under the Hellenic Registry is the most important step that has increased the attractiveness of the flag. A large portion of the Hellenic companies always uses Greeks as captain and first engineer for their vessels, regardless of the flag. So the big sum is paid nevertheless. If the price difference between the Hellenic and foreign flags is lower, for instance about $300-$400, it's worth looking at this option as well. Another important issue is the scarcity of foreign crews these days, due to the big increase of demand, occurring from the healthy prospects of the market and the bigger vessels entering into service. As a result, the salary differences between foreigners and Greeks aren't that big as in the past.

Do you believe that at present Go Carriers has the strength to fend off potential hostile bids (especially with the recent return to profitability), or would you say that the management is always open in new investment opportunities and strategic partnerships?
In terms of shareholder base or management, yes we are in such a position to avoid any hostile bids. But I have to admit that all things bear a price. We're always open to new business proposals, provided that the price we receive meets our expectations and is in line with the company's true value, benefiting our investors' interests.

The company announced a rather attractive and aggressive dividend policy by distributing 50% of net income. Do you believe that this move will help bring new shareholders?
Of course, and this was one of the reasons we did it. I can tell from the preliminary reactions we received, that it was seen in a very positive way. The good thing is that the large dividend doesn't hinder our efforts to further expand the company's fleet, since we have a significant cash flow.

Would you say that the investor's sentiment towards AIM has changed in the last few months, against a rather bumpy start? Is the investor sentiment positive against shipping companies like GO Carriers?
The answer is yes, at least for other industries. If one takes a look at the companies now listed in AIM, their market capitalization and their overall business, we would come easily come to the conclusion that the market has grown into a major one, while it is much more flexible than other markets and less demanding in terms of paperwork. Regarding shipping in particular, despite the fact that London is more experienced in this industry than New York, investors are less keen in entering the market. But I can tell you that many shipping companies are now trying to float in the London market and in the short-term things will change for the better, especially if the current euphoric trend in the stock markets continues. We'd like to see more shipping companies entering AIM, because at the moment there is no benchmark for comparison, between Go Carriers and the competition. We are the only shipping company listed in AIM.

Going forward in 2007, what are the management's predictions on the company's future earnings, given that the company opted for fixed time-charters?
Last year the company reached earnings of about $20 million. For 2007, our predictions say that gross earnings will almost double to bout $38 million. Excluding the fact that we added two more vessels in the fleet, we have to take into account that last year's bookings were made in a period of low charter rates, something that didn't happen for this year. What's more important is that we managed to keep expenses low.
"

[olivercromwell] 04/10/2007 18:02

t8,

it's all tax deductible i s'pose tho i'd rather have the cash back!

cheers

oc

[tuckswood8] 04/10/2007 17:59

OC - Welcome on board, now let's get those losses back!

[bigbobjoylove] 04/10/2007 11:30

back looking good on level 2.

[sharpshare] 04/10/2007 09:42

Latest charter rates and second hand prices.

Spot charter rates per day:
Capesize: USD 130,000
Panamax: USD 79,500
Handymax: USD 57,000

Second hand prices (5yr old)
Capesize: USD 130mil
Panamax: USD 79mil
Handymax: USD 68mil

[slapdash] 04/10/2007 08:58

there is always some idiot party pooper who has to sell just as the share price starts moving up.... slap

[saucepan] 04/10/2007 08:18

Not quite, CR. The all time high was at the time of floation (see chart below), but I expect this to be taken out soon: and it makes for a great base formation.

Recent momentum has been very impressive nevertheless!



Good to see you tracking this stock: it seems right up your street: a young growth company, apparently significantly undervalued. Are you long yet?