Top Ships - No Dilution For 12 Months Is A Game Changer
Mar. 29, 2018 4:16 AM ET|Includes: TOP Ships Inc. (TOPS)
Summary
No more dilution.
Net asset value = 136mil.
Eco Modern Vessels.
Higher demand and higher charter rates.
FINANCIAL ARGUMENTS
Net asset value: 136mil (It’s even more now because the value of the 0-5 years old MR vessels spiked 5% in March 2018 )
Cash in hand: 24mil
European bank agreement that was announced is a game changer. They are very strict with their money so they believe TOPS will meet all the criteria.
2016 / 2017 Revenue increased by 46%
FUNDAMENTAL ARGUMENTS
No more offerings and end of Crede deal is a game changer ( shorts have no secure cover )
TOPS strategy with modern vessels that meet all the criteria for future regulations will be a big advantage for TOPS. 15% of the total world MR fleet will not comply with regulations. Let’s say demand goes as projected up 5 % and supply goes down to -15 %. That’s a huge deal in shipping. Charter rates will spike hard on that.
New building vessels will be priced at much higher value than today. In March 2018 we have a 5% MR vessel value increase ( 5% is a big number when we are talking about a fleet worth 500mil )
Stable contracts with the big major oil companies: STENA BULK, BP SHIPPING, SHELL,
Charter rates started going up since December 2017
WHY WAS THE REVERSE SPLIT GOOD
The benefit of a reverse split is that by reducing the shares outstanding and share float, the stock becomes harder to borrow, making it difficult for short sellers to short the stock.
POSSIBLE CATALYSTS
13D ( showing us the free float, possible that subsidiaries bought shares)
20F ( full earnings report where we can see the updated NAV – net asset value )
Dividends announcement,
Contract update with BP Shipping,
Share buyback by the company ( they have 24mil in cash and they fixed the financing for 2018 vessels )
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in TOPS over the next 72 hours. |
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