Global Oceanic Carriers Share Discussion Threads

[calumofthenorth] 31/3/2006 14:53

Yes, they have, however the market cap has fallen £20m while the impairment would be approx £12 million. As I have said before, this is a cashflow investment, they could impair the ship value which would cut the depreciation but increase operating profit, none of which affects the cashflow of the company. Even with the impairment the Shareholders equity is roughly:

$40 million of ships + $3.5 million cash - $20m debt = $23.5 million

Approx £13.5m to a market cap of approximately £9m

CalumoftheNorth

[bruce the goldfish] 31/3/2006 13:24

I have cast an eye over the announcements made by GOC since floating on AIM and noted one particular announcement that would cause me concern as an investor. On 5 Jan 2006 the company announced the restructuring of its debts and at the same time stated that:-

"the directors believe that the current value of the company's fleet is in excess of US$40 million"

Now correct me if I am wrong but the company spent $63.9 million acquiring its three ships in 2005 and they are recorded at $62.6 million in the balance sheet at 30 Sept 2006. So is it me or has GOC actually announced that there is a potential impairment of circa $20 million in the value of its existing fleet of ships.

If anyone has any idea I would be very interested to hear your opinion.

Thanks in advance

BTG

[papalpower] 30/3/2006 15:40

BTG, seen the same thing happen on KIB last year, stays stable and then all of sudden drops quickly, stabilises and then the process repeats again.

[bruce the goldfish] 30/3/2006 15:30

My sentiments exactly General - it does seem strange that the price has held up. Maybe the MM's are happy to hold the price up if they feel they can sell the shares at the current price. If any buying does not materialise then maybe then they will start dropping the price. Interesting though...

BTG

[generalcuster] 30/3/2006 14:11

ah, i see what you mean - that it is still trading at 42p, even after the 32p deal. no idea. must be something to do with the liquidity. maybe the deal hasn't been filled yet?

curiouser and curiouser.

[generalcuster] 30/3/2006 14:05

maybe it has something to do with the rumour i heard that Goldenport has managed complete its IPO and will be listing on the LSE on Monday. I'm not sure why this would cause a sell off though. I would have expected the price to go up on this news.

All very strange.

[bruce the goldfish] 30/3/2006 12:42

Notice a sell of 178k shares at 32p, yet the price surprisingly does not respond. Anyone know of any reason for this?

BTG

[bruce the goldfish] 20/3/2006 19:54

I have been watching this for a while now and like the fact that it trades at below NAV, but until there is more transparancy in the stock in the form of results I still think the market will remain unconvinced. Good news on the charter rates today, although nothing spectacular.

A long-term play imo but as previous posters have pointed out this is a cash-flow investment and not profit driven, although it is the latter out of which dividends will be paid.

Still watching, probably still going to be a while before the ship picks up any steam.

BTG

[sharegod] 20/3/2006 09:11

just what does it take to move this company?Lack of faith in the management and their total indifference to pi's may be one thing but this is quite clearly cheap.

If this is not 75p by midsummers day Ill dance naked around nelsons column.

[pomp circumstance] 20/3/2006 07:46

some good news at last!!


Charter Updates

RNS Number:0191A
Global Oceanic Carriers Ltd
20 March 2006


Press Release 20 March 2006


Global Oceanic Carriers Limited

("GO Carriers" or "the Company")

GO Pride and GO Faith Charter update


Global Oceanic Carriers Limited (AIM: GOC), the AIM-listed Greek-based drybulk
shipping company, announces that it has secured charters for its vessels GO
Faith and Go Pride. Go Faith, immediately after completion of its cargo
discharge at Pohang, South Korea, has been fixed for a time charter trip to load
in Australia and discharge it's cargo in China. The duration of the voyage will
be approximately 30-35 days and the agreed daily hire is US$ 16,000.


GO Pride has been fixed for a period of approximately 30-35 days at the rate of
US$12,000 per day. This charter will commence immediately after completion of
its cargo discharge at Kuwait for a trip via Ruwais, UAE, where will load its
cargo with redelivery after it has discharged this cargo at a far eastern port
of Charterer's choice, likely to be in China


Commenting on these recent charters, Vassilis Vintiadis, Chief Executive of GO
Carriers, said: "We are pleased with these charters as they reinforce our belief
that in the short term there will be strong Chinese demand for raw materials
that will continue to assist charter rates for drybulk shipping".


- Ends -


For further information:
Global Oceanic Carriers Limited
Vassilis Vintiadis, Chief Executive Officer Tel: [phone]
[e-mail] www.gocarriers.com


Collins Stewart
Tim Mickley, Corporate Finance Tel: [phone]
[e-mail] www.cstplc.com



Media enquiries:
Abchurch
Charlie Jack/Dana Thomas Tel: [phone]
[e-mail] www.abchurch-group.com



Notes to editors


Global Oceanic Carriers Limited, is a newly formed shipping company comprising
of ship ownership, management and chartering. The company is based in Piraeus,
Greece and incorporated in Jersey. The Company has acquired three vessels and
will use the extensive shipping experience of the management and the dynamic
market conditions to build a fleet for long term charter revenue.



The Company's fleet comprises of two Panamax bulk carriers and one Handysize
vessel with an aggregate carrying capacity of 171,941 Dwt. The Company has
brought together the considerable shipping expertise and contacts of the Board,
in particular the CEO, Vassilis Vintiadis, the founder and owner of Niva
Shipping Limited a 27 year old shipping company based in Piraeus, Greece with
strategic relationships primarily focused on China and India.



Drybulk ships carry cargo that is shipped in large volumes and can be easily
stowed in a single hold including iron ore, coal and grain. Strong demand from
Asia for these commodities has been the driving force behind the recent increase
in seaborne drybulk trades. Between 1999 and 2004, trade in all drybulk
commodities increased 25 per cent. In 2004, approximately 2.5 billion tons of
drybulk cargo was transported by sea, comprising more than one-third of all
international seaborne trade. Fuelling this growth has been the Far East which
imports over half the worlds shipped coal and iron ore. This demand has led to
a considerable shortage of drybulk ships with shipyards at full capacity until
the end of 2007.


GO Carriers is listed on the AIM market, stock code GOC.L


www.gocarriers.com

[jonwig] 16/3/2006 07:32

Dunno as yet. Here's the full statement, for the record:

Global Oceanic Carriers Limited announces it has been informed that as of close
of business on Thursday, 9th March 2006, Ian Barclay has a holding of 815,000
ordinary shares in the Global Oceanic Carriers Limited, representing 4.31 per
cent of the issued share capital of the Company.

EDIT: too common a name to get a handle via Google, but an IB (together with his brother) are big in Aussie construction: Barclay Mowlem.

[sharegod] 16/3/2006 07:22

who is ian barclay?

[generalcuster] 02/3/2006 14:54

The average P/NAV for US listed bulkers is around 1.5x. I reckon that the NAV of GO is around $20m so multiply by 1.5 and divide by the number of shares out there, which I think is around 20.5 million, excluding the options, and you get $1.46 per share, or around 84 pence. That would be a nice healthy increase.

Right now though, I don't think GO deserves a premium to NAV, because they just have a few old ships. There are no other assets - even the management company is outside - so what other value is there in the company other than the fixed assets? I'm not necessarily negative on this stock at the moment and maybe it has been oversold a bit, but I dont think I can take the plunge until management become a bit more aggressive.

[generalcuster] 01/3/2006 15:00

Calum - I think your analysis is in the right direction, showing that the company can generate cash, even if the BDI falls - which I'm sure it will in the summer months. But for me, this seems like a bit of a dead stock. There is no analyst coverage as far as I know and very little volume movement. There doesn't appear to be any correlation between the BDI and the share price like there is with some other dry bulk companies in the US. Fundamentals don't seem to mean much.

I don't think they can do much by generating $1.5-$2m per year. Its not enough to pay decent dividends and at the same time replace their ageing vessels, let alone grow the fleet. What I would like to see is management doing something elso proactive, like they did with the refinancing, to kick-start some interest. Without it, the market cap will remain below NAV - an indication that the market thinks management is failing.

[rebtif10] 28/2/2006 13:22

MoneyWeek had these down as a buy a month or so back. When are the results due out??

[calumofthenorth] 28/2/2006 11:03

Generalcuster,

Thanks for pointing out the error, I had GO Pride and Go Faith the wrong way round, I now have GO Pride with 4 more years of revenues and GO Faith with 6. As Faith brings in more money than Pride (that's a good saying) that actually increases the return to around 21%. Again, this is only a rough guide.

I agree about the shareholders equity, undoubtedly it has decreased substantially but if they take the impairment hit now then it'll cut their depreciation and possibly they'll start posting profits rather than slowly running down the equity. None of which will affect the cashflow.

CalumoftheNorth

[pomp circumstance] 28/2/2006 07:58

any chance these might acually move one day!!

[jonwig] 28/2/2006 07:31

Calum - Hi,

Hadn't connected you with this thread when I posted the link.
Thanks again for it.
(Still not a holder...)

[calumofthenorth] 27/2/2006 22:23

Most of the figures are from the Listing Prospectus from Arburthnot and the recent results and newsflow. The Dryships Inc. figures are from their 3rd quarter roadshow presentation: (

Enjoy....

CalumoftheNorth

[jonwig] 27/2/2006 19:10

Haven't checked the figures or assumptions yet, but here's a very thorough analysis:



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