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Clarkson Capital Markets' Initiation Report on Rickmers Maritime:
http://rickmers.listedcompany.com/misc/C...092712.pdf [Report]
(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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with the recent price surge, i have a feeling rickmers may do a rights issue soon... Usually a rights issue comes about after some sudden price surge, if you have enough money, you can always create a temporary net demand to increase the share price
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Company Name Type Expiry Date Record Date Date Paid/Payable Particulars
RICKMERS MARITIME DIVIDEND 12 Mar 2013 14 Mar 2013 28 Mar 2013 011012 - 311212 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 12 Nov 2012 15 Nov 2012 29 Nov 2012 010712 - 300912 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 17 Aug 2012 22 Aug 2012 5 Sep 2012 010412 - 300612 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 4 May 2012 8 May 2012 22 May 2012 010112 - 310312 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 24 Feb 2012 28 Feb 2012 13 Mar 2012 011011 - 311211 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 25 Nov 2011 29 Nov 2011 13 Dec 2011 010711 - 300911 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 5 Aug 2011 10 Aug 2011 23 Aug 2011 010411 - 300611 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 3 May 2011 5 May 2011 23 May 2011 010111 - 310311 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 25 Feb 2011 1 Mar 2011 16 Mar 2011 011010 - 311210 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 26 Nov 2010 30 Nov 2010 15 Dec 2010 010710 - 300910 USD 0.0057 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 26 Aug 2010 30 Aug 2010 15 Sep 2010 010410 - 300610 USD 0.0057 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 7 May 2010 11 May 2010 25 May 2010 010110 - 310310 USD 0.0057 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 22 Feb 2010 24 Feb 2010 16 Mar 2010 011009 - 311209 USD 0.0057 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 19 Nov 2009 23 Nov 2009 11 Dec 2009 010709 - 300909 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 26 Aug 2009 28 Aug 2009 16 Sep 2009 010409-300609 USD 0.006 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 7 May 2009 11 May 2009 20 May 2009 010109-310309 USD 0.0214 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 19 Feb 2009 23 Feb 2009 5 Mar 2009 011008-311208 USD 0.0225 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 13 Nov 2008 17 Nov 2008 27 Nov 2008 010708-300908 USD 0.0225 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 18 Aug 2008 20 Aug 2008 29 Aug 2008 010408 - 300608 USD 0.0225 TAX EXEMPT
RICKMERS MARITIME DIVIDEND 16 May 2008 21 May 2008 30 May 2008 010108-310308 USD 0.0214 TAX EXEMPT
Come to think of it, the rights exercise price is 24 cents SGD (around 20 cents USD), the total dividends received from May 2008 until today is about 20 cents USD. What a wonderful company, they are asking back all their money, shareholders are taken for a nice ride
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^^^ Yes. That's the life of REITs investors. Sometimes they themselves dont even realise it.....
REITs are not family heirlooms that can pass to your grandchildren. S-REITS have yet to be tested by the eventual interest rate upcycle
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Trust and Reits are different, as for the rights, you can choose to sell the rights and the shares, you dun have to subscript...
MOst reits have not seen Asian Financial Crisis where interest goes near the 10% mark, but that would be an extraordinary event, whereby every counters will be slammed, not just Reits. Reits have gone throu period of time whereby interest are close to 4% and they are doing ok
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The mistakes were done in 2007 - 2008 when the Management chose to leverage heavily to purchase vessels at peak price AND failed to take on amortizing loans. There were plans in 2008 to raise a substantial rights issue of US$650 million to finance the acquisition of 5 Mitsui vessels, 4 Hanjin vessels and 4 Maersk vessels. As we all know, the GFC came - vessel valuation declined, liquidity dried up and unit price plunged. Some of the M&A contracts were cancelled and RMT had to pay a penalty fee to the parent company. Today, Rickmers face continued pressure on vessel valuation (weak LTV), the increase likelihood of decline in cash-flow as vessel leases start to mature next year and increased loan amortization in 2013 onwards. Throw in the Convertible Bond and expiry of LTV covenants- the situation isn't healthy. The rights issue will give the Trust some breathing room but I don't think it will clear up the problem entirely unless the container rates start to improve in 2014 onwards. The moral of the story is simple - don't over-leverage to purchase vessels (part finance it with equity), take on long term LTV-free amortizing loans so you won't be exposed to the shipping cycle directly, spread out your M&A across the cycle and don't engage in speculative M&A without financing in place and retain a portion of the profit for a rainy day. Granted, the Management did deliver operationally - vessels are largely deployed and there was no counter-party default. Interestingly, they are maintaining the DPU which implies a doubling of distributable income. I wonder will this be sustained in 2014 onwards when leases start to expire. I suspect a recovery in freight rates is the main upside going forward.
Please correct me if I am wrong.
(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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At least lee Hsien Yang's wife is supporting the rights issue. She last supported MIIF at 30c and look at the price of MIIF today!
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