First Ship Lease Trust

[thleong]

yes. it is grossly over-valued... Not even worth 5 cents... Wait patiently, it will come to that level

Wallstraits's Curtis strongly recommended this counter at that time.
Until now I could not understand why...

[money]

From time to time, i will come take a look at the share price of FSLT, i would conclude that the market can be very very inefficient at times.

On a positive note, when one makes a mistake, one can still exit from an investment (at a small loss hopefully) since there will always be optimistic people around to pick up the shares

[thinknotleft]

It is getting interesting as there is only one view.

FSL has risen to more than $0.15 from 0.125 in last few weeks. At present level, it is around 25% of its NAV.

On a similar note, Mercator has also risen to above 0.13 - 1/3 of its NAV.

Looks like the pessimistic view is turning optimistic.

Vested a small amount in FSL.

[Musicwhiz]

Looks like the pessimistic view is turning optimistic.

Any reasons for why this might be so? Would you see it as a possible turnaround in the shipping cycle? As I understand there is still quite a significant over-supply out there in the market.

Another factor which could explain the surge - interest has been strong in pennies and micro-pennies in the last couple of days.

[egghead]

I thoguht FSLT is rather worthless without any distribution. Have they resumed any distribution?

[thinknotleft]

The optimistic view is, I think, explained by the mkt sentiment.

Nonetheless, I think FSL may double over the course of 5 yrs. I am adopting a 5-yr view year here, since I do not know when the shipping cycle will turn. But the cycle should turn somewhere before 2018.

Coupled with the gradual pare down of its bank debt, and thus lower interest payment, FSL should be in better position 5 yrs later.

There is, of course, downside risks such as termination charter contract due to shipping company bankruptcy.

On distribution, I think it is safer to buy now without distribution than to buy a few years ago with 10% yield. Valuing a stock based on yield is not for me.

[iff]

I would say this is still a risky counter for now

[safetyfirst]

i would think FSL has no value for shareholders, if i own a bank and my bank loans money to FSL, i would be really worried about collecting back the principal amount if it does not do a rights issue or share placement soon

[thinknotleft]

Fsl results out. Looks like more charter being re-negotiated. Divested my small stake in FSL. Place the funds on NOL instead.

[a74henry]

FSL will have to look carefully at its cost and focus on working closely with the ship operators.

I will be interested to know when the management can redistribute its dividends again.